Cortech Inc. announced Tuesday that it has filed an initialpublic offering of 4 million common stock units at $8 per unit.Montgomery Securities and Hambrecht & Quist Inc. are co-managing the offering.
According to the company, the net proceeds will be used tofinance clinical trials (approximately $10 million), research anddevelopment (about $8 million) and capital expenditures(about $2 million).
All of the units consist of one share of common stock and onecommon stock conversion right. Each right, unless terminatedearlier, will automatically convert on May 24, 1994, into amaximum of one-half share of common stock.
On Jan. 8, 1993, the common stock and common stockconversion right will be quoted on NASDAQ under the symbolsCRTQ and CRTQR, respectively. The underwriters have an optionto purchase an additional 600,000 units to coveroverallotments.
Cortech of Denver is developing two novel classes of drugs,bradykinin antagonists and neutrophil elastase inhibitors, totreat inflammatory disorders, and a proprietary potentialtreatment for allergies and autoimmune diseases.
According to company spokeswoman Christi Campbell, the FDAis analyzing data from Phase I clinicals of Cortech's leadbradykinin antagonist CP-0127, called Bradycor, in acute orlife-threatening situations. Cortech plans to begin Phase IItrials of the compound in the first quarter of 1993.
Cortech is developing Bradycor to block the action ofbradykinin, a mediator of inflammation. Bradykinin plays acentral role in inflammatory processes as the systemicinflammatory response syndrome (SIRS), head injury andasthma.
SIRS is a disease category that includes shock and multiorganfailure caused by sepsis, severe trauma and burns, and Cortechbelieves that more that 750,000 patients in the U.S. may be atrisk of developing SIRS annually.
Last February, CP-0127 Development Corp., Cortech's researchand development spinoff, raised $8.5 million to pursue its CP-0127 bradykinin antagonist.
-- Michelle Slade Associate Editor
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