Neurex Corp. said Thursday that it has filed for an initial publicoffering of 3.5 million shares of common stock with a proposedprice of $7 to $9 per share.
The Menlo Park, Calif., company is developing peptide-basedneuronal calcium channel blockers to treat disorders anddiseases of the brain and central nervous system. Calciumchannels regulate the entry of calcium into nerve cells and therelease of neurotransmitters.
Neurex plans to file its first investigational new drugapplication by the end of the year for SNX-111, its leadcompound to prevent neurological damage following cardiacarrest.
Last June, Neurex and Ono Pharmaceutical Co. Ltd. of Osaka,Japan, signed an R&D agreement to develop peptide-basedcompounds and orally active small molecule compounds totreat neurodegenerative and psychiatric disorders.
Under the agreement, Neurex is to receive $5 million from Onoover three years. Neurex will have exclusive worldwide rights,excluding Japan and East Asia, to any peptide compoundsdeveloped. Ono will have exclusive rights in Japan and EastAsia to peptide and small molecule compounds. The twocompanies will have co-exclusive rights outside of Japan andEast Asia to small molecule compounds developed.
If the offering is completed, Neurex will have 12.4 millionshares outstanding. Underwriter Morgan Stanley has a525,000-share overallotment option. -- Karen Bernstein
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