Biotech companies dominate PIPE action; Sequenom secures $20 million from stock sale

By Sheri Kasprzak

New York, April 25 - Biotechnology companies packed the PIPE market with offerings Wednesday led by a $20 million stock offering from Sequenom, Inc.

Biotech stocks on Wednesday were mixed, but one sellsider familiar with biotech offerings said that individual biotech companies' stocks are probably driving activity more than the sector as a whole.

"You can't just look at the sector as a whole," he said. "Sometimes you can't even just look at the company's stock. You have situations sometimes where Company A needs cash soon and they can't get it anywhere else so they do a PIPE or sell shares off the shelf, and if they have to do it at a big discount, then they just have to grin and bear it."

Even so, Sequenom is selling its shares almost on par with the market price of its stock.

A group of institutions agreed to buy 6,666,666 shares off the company's shelf registration at $3.00 each, only a slight premium to the company's $2.99 closing stock price on Tuesday.

The offering is expected to wrap up on Friday.

Lehman Brothers Inc. was the bookrunner.

Sequenom's stock gained 8.7%, or 26 cents, Wednesday to end the session at $3.25 (Nasdaq: SQNM).

Sequenom, based in San Diego, provides genetic analysis products used for biomedical research, livestock and agricultural applications and molecular medicine.

Innovive wraps offering

In other biotech news Wednesday, Innovive Pharmaceuticals, Inc. sold 5.5 million units at $2.73 each for proceeds of $15.015 million. The unit price is a 22% discount to the company's $3.50 closing stock price on Tuesday.

News of the deal sent the company's stock up 10%, or 35 cents, to close the day at $3.85 (OTCBB: IVPH).

The units consist of one share and one half-share warrant. Each whole warrant is exercisable at $3.75 for five years.

Paramount BioCapital Inc. was the placement agent.

Proceeds will be used to advance the company's pipeline of hematology and oncology products.

"This financing provides us with the resources to continue the planned rapid advancement of our robust pipeline of hematology and oncology drug candidates," said Steven Kelly, the company's chief executive officer, in a news release.

"In the coming months, we plan to move forward with our development plan for INNO-406, including initiation of two pivotal trials for chronic myelogenous leukemia and manufacturing and regulatory activities to support the trials. We also plan to initiate a phase 2 trial with INNO-206 in small cell lung cancer and a pivotal trial with Tamibarotene for acute promyelocytic leukemia."

New York-based Innovive acquires, develops and commercializes therapies for cancer and blood diseases.

Elite pockets $15 million

Another biotech company, Elite Pharmaceuticals, Inc., came away with $15 million from the sale of 15,000 shares of series C convertible preferred stock.

The shares were sold to a group of institutional and other investors.

The preferreds are convertible into 6,465,517 common shares at $2.32 each.

The investors will also receive warrants for 1,939,655 shares, exercisable at $3.00 each through April 24, 2012.

Oppenheimer & Co., Inc. was the lead agent for the offering.

By 1 p.m. ET Wednesday, the stock had climbed 2.17%, or 5 cents. At the end of the day, the stock climbed 3 cents to close at $2.33 (Amex: ELI). Volume skyrocketed with 251,800 shares traded compared with the average 46,519 shares.

"We are pleased to have completed this private placement, which we believe will contribute significantly to our efforts to advance our portfolio of pain products and accelerate the development of other drug product candidates," said Bernard Berk, the company's CEO, in a statement.

Based in Northvale, N.J., Elite develops oral controlled-release products.

Titan secures $11 million

Yet another biotech company, Titan Pharmaceuticals, Inc., said it plans to close a $10,998,900 registered direct placement of its stock.

The offering includes up to 5.445 million shares at $2.02 each.

The shares will be sold under the company's shelf registration.

Rodman & Renshaw, LLC is the placement agent.

The deal will be settled upon shareholder approval.

The company's stock ended the day down 9 cents, or 3.9%, to close at $2.22 (Amex: TTP).

Located in South San Francisco, Calif., Titan develops treatments for central nervous system disorders, cardiovascular disease and other disorders.

CryoCor to raise $5.4 million

In other biotech news Wednesday, CryoCor, Inc. announced its plans to close a private placement for $5,409,454.

A group of investors has agreed to buy 1,052,423 shares at $5.14 each. The investors will also receive warrants for 578,824 shares, exercisable at $5.14 each.

The stock gained 24 cents, or 4.45%, to end at $5.6299 Wednesday (Nasdaq: CRYO).

San Diego-based CryoCor develops minimally invasive and disposable catheters used to treat cardiac arrhythmia.

Golden Phoenix raises $6 million

Moving to the resources sector, Golden Phoenix Minerals, Inc. visited the PIPE market and came away with $6 million, benefiting from recent gains in gold prices.

A market source with knowledge of the resources sector recently said gains in gold have sparked activity, mainly among Canadian gold explorers.

In the Golden Phoenix deal, the company issued 20 million units of one share and one half-share warrant at $0.30 each to a group of investors led by Sprott Asset Management, Inc. The whole warrants allow for the purchase of another share at $0.40 each for two years.

On Wednesday, the stock gained 2.3 cents to end at $0.393 (OTCBB: GPXM).

Based in Sparks, Nev., Golden Phoenix is a gold exploration company.

Premier raises C$17.4 million

In other gold-related news, Premier Gold Mines Ltd. wrapped an offering of flow-through receipts and non flow-through subscription receipts for C$17,387,500.

The company issued 1.6 million flow-through receipts at C$3.25 each and 4.875 million non flow-through receipts at C$2.50 each.

Goldcorp Inc. was the lead investor, purchasing 1.37 million receipts.

The receipts are exchangeable for one unit of one share and one half-share warrant once the company enters into a formal joint venture agreement with Goldcorp.

The whole warrants allow for the purchase of another share at C$2.70 each for 18 months.

Proceeds will be used for exploration and development on current projects, for acquisitions and for general corporate purposes.

Westwind Partners Inc. was the lead underwriter.

Premier Gold's stock climbed by 9.09%, or 20 cents, to settle at C$2.40 (Toronto: PG).

Located in Thunder Bay, Ont., Premier is a gold exploration company.

Corex stock drops 5%

In secondary market news connected to the gold market, Corex Gold Corp.'s stock dipped on Wednesday after the company priced a C$5.004 million unit offering on Tuesday.

The stock fell 5 cents to close at C$0.95 (TSX Venture: CGE). On Tuesday, the stock also gave up 5 cents to settle at C$1.00.

In the placement, the Vancouver, B.C.-based gold explorer plans to sell units of one share and one half-share warrant at C$0.90 each.

Proceeds will be used for exploration on the company's Mexican resource properties and for working capital.

Haywood Securities Inc. is the lead agent for the deal.

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