Santarus considers new issue, collaboration to raise financing

By Jennifer Chiou

New York, March 7 - Santarus, Inc. said it may raise more funds through a securities issue, strategic collaboration or debt financing, according to a 10-K filing with the Securities and Exchange Commission.

The company said it believes that with its cash, cash equivalents, short-term investments and potential proceeds from a committed equity financing facility with Kingsbridge, it has sufficient financing to operate for at least the next 12 months.

However, Santarus noted that its projected revenue may decrease or its expenses may increase, prompting the possible financing outlets in 2006, according to the filing.

The company added that the additional funds will go towards marketing its Zegerid products.

Santarus said in the release that as of Dec. 31, cash, cash equivalents and short-term investments were $69.4 million, compared to $114.0 million as of Dec. 31, 2004.

The San Diego, Calif., pharmaceutical company is focused on developing treatments for gastrointestinal diseases.

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