Celtrix Pharmaceuticals Inc. announced Thursday that it hascompleted a $12 million private placement with Warburg,Pincus Investors L.P.
The placement consists of 1.34 million shares of Celtrix'scommon stock (NASDAQ:CTRX) and a warrant for Warburg,Pincus to purchase 687,155 shares of CTRX in the future.
As part of the placement, Warburg, Pincus principals PeterStalker III (managing director) and James Thomas (vicepresident) will take seats on Celtrix's board of directors.
With the closing of the placement, Warburg, Pincus will have a19 percent equity interest in Celtrix of Santa Clara, Calif.,according to Sandra McNamara, Celtrix's vice president andchief financial officer. She explained that Warburg, Pincus firstinvested in Celtrix as part of a private financing in June. Thatfinancing, arranged by Robertson, Stephens & Co. L.P., involvedthe placement of 1.77 million shares of Celtrix stock withprivate investors at a 15 percent discount to the market price.Celtrix netted about $9.9 million from the transaction,McNamara said.
Celtrix also announced last week that it had garnered $600,000in funds from the FDA's Office of Orphan Products Developmentto support its Phase III clinical trials on BetaKine for treatingmacular holes. The FDA granted BetaKine (transforming growthfactor beta-2) orphan drug status in January.
According to Dale Stringfellow, Celtrix's president and chiefexecutive officer, the company has raised $22 million this year.
The company reported a net loss of $4.2 million for the secondquarter, ended Sept. 30; its cash, cash equivalents and short-term investments were $23.4 million for the period.
Celtrix's stock closed Thursday at $9.75 a share, up 75 cents.
-- Jennifer Van Brunt Senior Editor
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