BioTie says financial situation will be significantly improved following equity offering

By Jennifer Lanning Drey

Portland, Ore., Nov. 6 - BioTie Therapeutics Corp.'s financial situation is expected to significantly improve following its recently announced €13 million to €15 million equity offering, chief executive officer Timo Veromaa said Monday at the Rodman & Renshaw 8th Annual Healthcare Conference.

The equity offering is planned for November and December and has commitments of €13 million already in place, Veromaa said.

During his presentation, Veromaa said BioTie is focused on advancing its lead product candidate, nalmefene for the treatment of alcoholism and pathological gambling, and expects to sign new partnering agreements on the drug in certain strategic markets.

"There's significant upside for future value growth, especially as we expect to strike further deals for nalmefene for other key strategic markets in Europe by next summer if not sooner," Veromaa said.

BioTie expects to launch nalmefene for treatment of both alcoholism and pathological gambling in the European Union in the second half of 2007, he said.

The company currently has a marketing and distribution agreement in place in the United Kingdom and Ireland with Britannia Pharmaceuticals that covers nalmefene for the treatment of alcohol dependence disorders.

On the North American front, BioTie has a licensing agreement with Somaxon Pharmaceuticals covering nalmefene for the treatment of dependence disorders. Under the agreement, BioTie will receive royalties on U.S. sales of the drug if it is approved.

Somaxon is conducting a phase 2/ 3 clinical trial of a once-daily tablet form of nalmefene for pathological gambling and expects to have results from the study in early 2007, he said.

"I believe we are pretty well set up for good growth and progress in the dependence disorders area with nalmefene," Veromaa said.

BioTie, based in Turku, Finland, is a biotech company focused on treatments for dependence disorders like alcoholism and pathological gambling, as well as inflammatory diseases and thrombosis.

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