Neurex Corp. announced last week that it filed on Dec. 24 anamendment to its registration statement with the Securitiesand Exchange Commission (SEC) for its initial public offering(IPO) of 3 million shares of class A common stock at $10-12 pershare.
Lehman Brothers and Kidder Peabody Inc. will co-manage theoffering, and the underwriters have been granted a 30-dayoverallotment option to purchase an additional 450,000 sharesof class A common stock.
The Menlo Park, Calif., company originally filed for 3.5 millionshares of common stock (not distinguished as class A and classB) at $7-9 per share last February. That offering wasunderwritten by Morgan Stanley. Although the current IPO issignificantly different than the original, the SEC didn't considerit a new document, said Brad Wait, Neurex's chief financialofficer.
Following the offering, Neurex will have two classes of commonstock outstanding: class A and class B. Holders of class Acommon stock may receive additional shares of class A stock onthe second anniversary of the offering "under certaincircumstances," the company said. The class A stock will belisted on the NASDAQ National Market System; currently heldclass B stock will not be traded, Wait told BioWorld.
Neurex is developing peptide-based neuronal calcium channelblockers to treat disorders and diseases of the brain andcentral nervous system. It's known that calcium channelsregulate the entry of calcium into nerve cells and the release ofneurotransmitters. The company plans to file an investigationalnew drug application (IND) on its lead compound SNX-111, forpreventing neurological damage following cardiac arrest, in thefirst half of 1993, Wait said.
The company plans to use the proceeds of the offering forresearch and development, including preclinical and clinicaltesting, working capital and other general corporate activities.
-- Jennifer Van Brunt Senior Editor
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