S.R. ONE INCREASES STAKE IN RIBIRibi ImmunoChem Research Inc. said Monday it has enteredinto an agreement for a $1.7 million private placement withS.R. One Ltd.
S.R. One, a subsidiary of SmithKline Beecham, has purchased566,667 units. Each unit consists of one share of common stockand one warrant to purchase a share of common stock. Theinitial exercise price of the warrants is $4 per share.
Last June, S.R. One acquired 283,941 shares of Ribi stock(NASDAQ:RIBI) at $3.52 per share and received warrants topurchase 283,941 shares at $5 per share.
With the combined purchase, S.R. One holds 8.6 percent ofRibi's outstanding shares. If all warrants are exercised, S.R. Onewill have invested $6.4 million and will hold 15.9 percent ofRibi's outstanding stock.
Ribi, based in Hamilton, Mont., develops adjuvants(immunostimulants) for human and animal therapeutics. Thecompany's stock closed Monday at $4.88, up 38 cents.
CYGNUS SUED OVER NICODERM PATCH
Elan Transdermal Ltd., a subsidiary of Elan Corp. plc of Athlone,Ireland, has sued Cygnus Therapeutic Systems in the U.S.District Court in San Francisco, alleging that Cygnus'transdermal nicotine patch infringes Elan's U.S. Patent No.4,946,853.
Cygnus hasn't seen the complaint yet, said Shirley Clayton,Cygnus' vice president of finance. Cygnus of Redwood City,Calif., has received patents on its solid-state patch, said Clayton.Elan's patch delivers nicotine in a gel-like formulation.
Cygnus has licensed worldwide rights to its nicotine patch toKabi Pharmacia, which filed a new drug application with theFood and Drug Administration last December.
Cygnus stock (NASDAQ:CYGN) closed down 88 cents Monday at$11.88.
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