Boehringer Ingleheim International paid NeoRx $8 million forstock, warrants and product licenses, it was announcedTuesday.
Boehringer will buy 1,988,636 common shares and warrants, or6.8 percent, of NeoRx Cop. of Seattle for the right to purchase1 million shares of NeoRx at $3.96 and 1.5 million shares at$5.28. The agreement was specified on Sept. 11 and amended onSept. 17. NeoRx stock (NASDAQ:NERX) closed Tuesday at $2.18,down 13 cents per share.
Bob Littauer, chief financial officer at NeoRx, said thecompany received $8 million from Boehringer for "three things:the purchase of some stock, the purchase of a warrant and thereceipt of licenses. The warrant," he said, "gives them theright to purchase additonal shares for an agreed-upon price inthe future."
The license agreement involves certain NeoRX products andtechnologies.
The stock purchase and license agreement are part of a $22million deal between the two companies announced Sept. 29.Boehringer will also invest $3.6 million when NeoRx filesequavalency data with the FDA to qualify Boehringer as themanufacturer of its OncoTrac products. Boehringer will invest$10 million in developing the manufacturing process and gainmanufacturing and marketing rights for NeoRx products outsidethe U.S., while NeoRx maintains U.S. rights.
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