SciClone Pharmaceuticals Inc. has raised $22.4 million in aninitial public offering of 3 million shares of common stock at$7.25 per share and 3 million warrants at 20 cents perwarrant.
The San Mateo, Calif., company (NASDAQ:SCLN) acquires fordevelopment later-stage proprietary drugs that have anexisting base of preclinical and clinical data, focusing oninfectious diseases, cancer and immune system disorders.
SciClone has acquired from Alpha 1 Biomedicals Inc. worldwiderights, excluding the United States, Europe, Canada, Israel andKorea, to thymosin alpha 1 for all uses. Alpha 1 Biomedicals isconducting Phase III U.S. trials of thymosin to treat hepatitis B.SciClone plans to begin this year an open label trial inSingapore.
The company has acquired from SRI International exclusiveworldwide marketing rights to B2D, a compound chemicallysimilar to the anti-cancer drug doxorubicin. According toSciClone, animal data indicates that B2D shows equal or greaterefficacy to doxorubicin, with lower cardiac toxicity. SciCloneplans to file this year an investigational new drug applicationto begin clinical trials in the United States.
In late 1991, SciClone formed a joint venture with entitiescontrolled by the government of Singapore and an Asianventure capital firm to market products in eight Asiancountries.
To provide an initial base of marketable drugs for the venture,SciClone acquired from Ben Venue Laboratories Inc. marketingrights in 11 Asian countries for a group of generic cancer drugs.Those drugs are already sold in those markets through othermanufacturers.
During the next two years, SciClone expects to seek regulatoryapprovals in the countries covered by the joint venture forthymosin for hepatitis B and C.
SciClone anticipates that proceeds of the offering will last for atleast a year.
The warrants are exercisable at $9.43 to purchase one share ofcommon stock from March 17, 1993, through March 16, 1997.They may be redeemed by the company after March 16, 1993,if the stock price exceeds $12.33 for a specified period.
After the offering, SciClone has 10.7 million shares outstanding.Underwriter Josephthal Lyon & Ross Inc. has an overallotmentoption of 450,000 shares and 450,000 warrants.
SciClone shares closed at $9, up 25 cents, on Wednesday.
-- Karen Bernstein BioWorld Staff
(c) 1997 American Health Consultants. All rights reserved.