CAMBRIDGE, Mass. -- Genetics Institute Inc. on Tuesday filedfor two public offerings: a 1.8 million-unit offering to createSciGenics Inc., a biotech shell company; and a 1.25 million-share offering of Genetics Institute common stock.
The SciGenics units consist of one share of SciGenics stock andone warrant to purchase one share of GI common stock.
GI common stock (NASDAQ:GENI) closed Tuesday at $41, down$1.50. Following successful completion of the secondaryoffering, GI will have 16 million shares of common stockoutstanding.
SciGenics will use the proceeds of its offering to contract GI todevelop macrophage colony stimulating factor (M-CSF) in NorthAmerica, and embryonic growth and regulatory proteins (EGRPfactors) worldwide.
GI will have the option to reacquire the rights to eitherprogram or to acquire all the shares of SciGenics stock forpredetermined amounts at specified future periods.
M-CSF is in Phase I/II clinical trials for cancers and infectiousdiseases. M-CSF increases the tumor-cell killing ability of whiteblood cells.
GI's newly announced EGRP program is in the early stages ofresearch and is aimed at developing adult therapeutics fortissue growth and regeneration.
Underwriters are Robertson, Stephens & Co. of San Franciscoand Lehman Brothers Inc. of New York. -- KB
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