Avalon Pharmaceuticals lifts IPO aim to $62.1 million from $57.5 million

By Ted A. Knutson

Washington, June 23 - Avalon Pharmaceuticals raised the estimated gross proceeds from its planned initial public offering of common stock Thursday to $62.1 million from $57.5 million, according to an S-1A filing with the Securities and Exchange Commission.

The company said for the first time it expects to sell 4.5 million common shares with an underwriters over-allotment of 675,000 shares.

Avalon's first suggested price range for the sale is $10.00 to $12.00 per share.

Assuming a price in the middle, Avalon said net proceeds from the stock sale should be $45 million to $51.9 million. The latter figure assumes the over-allotment is bought in full.

First Albany Capital has been added as an underwriter. Legg Mason Wood Walker is the lead manager with Jeffries & Co. Inc. getting second billing.

In the IPO prospectus, Avalon describes itself as a clinical stage biopharmaceutical company focused on the discovery and development of small molecule therapeutics for the treatment of cancer.

Its primary drug candidate AVN944 is in early stage clinical development for the treatment of hematological cancers. AVN944 is licensed from Vertex Pharmaceuticals Inc.

Avalon said money from the stock sale would be used for the development of the drug along with researching for other potential pharmaceuticals and for general corporate purposes.

The Germantown, Md.-based biopharmaceutical company has applied to the Nasdaq to list its shares under the symbol "AVRX."

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