Argus Pharmaceuticals Inc. announced Tuesday that it has fileda registration statement with the Securities and ExchangeCommission for a follow-on public offering of 2.5 million sharesof its common stock, excluding overallotments.

The company has 7.4 million shares outstanding.

Argus (NASDAQ:ARGS) of Houston originally announced theoffering in January, but postponed it in March because ofadverse market conditions for biomedical company stocks. Theunderwriters remain S.G. Warburg Securities and Kidder,Peabody & Co. Inc.

In its initial public offering in July 1992, Argus offered 1.7million shares at $7 per share, grossing $11.9 million.

Argus currently has nearly $9.5 million in the bank, and itsannual burn rate is approximately $5 million.

The company has two compounds in clinicals. AR-121, a lipid-based intravenous formulation of the anti-fungal nystatin, is inPhase II trials for systemic fungal infections such as candidiasisand Phase I/II trials for the treatment of HIV-infected whiteblood cells. AR-623, a lipid-based intravenous formulation ofthe anti-cancer compound tretinoin, is in Phase I trials forleukemia.

Argus' stock closed unchanged at $6.25 per share on Tuesday.-- Brenda Sandburg

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