NeoRx Corp. on Thursday announced a private placement of $9million.
Investors agreed to buy newly issued common stock(NASDAQ:NERX) at $2 per share. The stock closed at $2.44 ashare on Thursday, up 19 cents.
The transaction was arranged by Daiwa Securities America Inc.and D. Blech & Co. In connection with the private placement,NeoRx also canceled 5 million shares each of its $1.75 and $2.50per share warrants held by David Blech in return for 3 millionshares of its common stock.
"We have sufficient funds to operate until mid-1995," saidRobert Littauer, chief financial officer. Those funds include netproceeds from this financing, a $3.6 million milestone paymentexpected from Boehringer Ingelheim during the third quarterand cash on hand (excluding revenues anticipated from sales ofthe company's OncoTrac lung cancer imaging agents and fromstrategic alliances based on the company's products for cancertherapy and prevention of restenosis after angioplasty).
NeoRx of Seattle plans to start a clinical trial this year in pre-targeting tumors for cancer therapy.
Paul Abrams, president and chief executive officer, said thefinancing "allows us to proceed deliberately in forming majorstrategic alliances designed to maximize the value of ourtherapeutic products."
The company has three cancer therapy trials in progress, hasfiled with the FDA for marketing approval of its OncoTrac SmallCell Lung Cancer Imaging Kit, and has completed a Phase IIItrial for a non-small cell lung cancer imaging agent.
Targeted biopharmaceuticals to treat cancer and restenosisafter angioplasty are in preclinical testing.
-- Nancy Garcia Associate Editor
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