BioCryst secures $65.3 million from stock sale; Curis to close $13 million offering

By Sheri Kasprzak

New York, Aug. 6 - Biotech companies emerged with a collection of stock offerings on Monday to open the week in PIPEs funding.

"Drug stocks are getting a lift," said one sellside market source.

That market source noted that when the broader stock market was taking a beating, drug companies may have been more hesitant to conduct PIPE offerings because their stocks were going down as well.

"The market is slowly turning around and drug stocks are improving even faster," he noted.

On Monday, the Dow Jones Industrial Average closed up 286.87 to end at 13,468.78 and the Nasdaq composite index gained 36.08 to settle at 2,547.33. The Standard & Poor's 500 composite index climbed by 34.61 to end at 1,467.67.

Heading up those biotech deals was a $65.3 million placement from BioCryst Pharmaceuticals, Inc.

News of the deal sent the stock up early in the session.

By 2 p.m. ET, the stock had gained 7.23%, or 57 cents. At the end of the day, the stock had climbed by 10.66%, or 84 cent, to end at $8.72 (Nasdaq: BCRX). The stock gave up a penny in after-hours trading.

Funds managed by Baker Brothers Investments, Kleiner Perkins Caufield & Byers, EHS Holdings, OrbiMed Advisors, Texas Pacific Group Ventures and Stephens Investment Management agreed to buy 8,371,795 shares at $7.80 each.

The investors also will receive warrants for 3.2 million shares, exercisable at $10.25 each.

Proceeds for human trials

"We are gratified by the strong support we received from this group of existing shareholders," said Jon P. Stonehouse, chief executive officer, in a statement.

"The completion of the offering is a vote of confidence in the company's future and strengthens our balance sheet allowing us to bolster the company's fundamentals. BioCryst is now in a stronger position to execute on our plans, advancing key development programs through late-stage human trials while also mining our productive discovery engine for new compounds to move into the clinic."

Proceeds will be used for the development of late-stage human trials.

In December 2006, BioCryst closed a $30 million registered direct placement of stock.

In that deal, the company sold 2,228,829 shares at $13.46 each to a group of investors that included Kleiner Perkins Caufield & Byers and Texas Pacific Group Ventures. The shares were sold under the company's shelf registration.

Based in Birmingham, Ala., BioCryst develops small-molecule pharmaceuticals for the prevention, treatment and control of cancer, cardiovascular diseases and viral infections.

Curis's $13 million deal

In other biotech news, Curis, Inc. is gearing up to close a $13 million unit offering.

The company will sell 12,220,916 units at $1.06375 each to institutional and other investors.

The units consist of one share and a warrant for 0.35 shares. The full terms were unavailable by press time Monday.

The deal is set to close on Wednesday.

Curis' stock gave up a penny on Monday to close at $1.01 (Nasdaq: CRIS).

Proceeds will be used for research and development costs as well as for general corporate purposes.

Based in Cambridge, Mass., Curis develops novel treatments for cancer.

Oramed raises $2 million

Elsewhere, Oramed Pharmaceuticals, Inc. concluded a $2 million offering of 4 million shares.

The shares were sold at $0.50 each.

The investors also received warrants for 4 million shares, exercisable at $0.75 each.

Proceeds will be used for the completion of phase 1 trials of its oral insulin gel capsule.

"This investment, at a premium to the market, ensures that Oramed has enough funds to reach completion of phase 1 trials, which we expect by mid-2008," said Oramed CEO Nadav Kidron in a news release.

"In fact, we hope to complete our phase 1A trials shortly. This investment marks a milestone for Oramed's stability, allowing the company to fully focus on its research and development efforts and complete its phase 1 product trials."

Oramed's stock climbed by 10%, or 4 cents, to end at $0.44 (OTCBB: ORMP).

With headquarters in Jerusalem, Oramed develops oral-delivered treatments for diabetes.

Metalink to raise $19.2 million

Moving to the tech sector, Metalink Ltd. plans to complete a $19.2 million offering.

Institutional investors plan to buy 3.2 million shares at $6.00 apiece.

The investors also will receive warrants for 800,000 shares, exercisable at $8.00 each for five years.

The deal is set to close within three business days.

On Monday, the company's stock slipped by 10.82%, or 79 cents, to end at $6.51 (Nasdaq: MTLK).

Located in Yakum, Israel, Metalink provides and develops wireless and wireline broadband communication silicon technologies.

China Natural stock dives

After closing a $15 million offering of stock on Monday, China Natural Gas, Inc.'s stock plummeted by 23.48%.

The stock began its descent early in the session, losing 22.73% by 11:50 a.m. ET. By the end of the session, the stock had given up $1.55 to close at $5.05 (OTCBB: CHNG).

Volume took off with 1,386,172 shares traded compared with the average 2,873.85 shares traded.

The company closed a $15 million offering of 4.6 million shares.

The exact price per share was unavailable by press time Monday.

The investors also received warrants for 690,000 shares, exercisable at $7.79 each for five years.

Brean Murray, Carret & Co., LLC was the placement agent.

Proceeds will be used for building additional retail filling stations and for general corporate purposes.

New York-based China Natural Gas operates a compressed natural gas pipeline in Xi'an, China.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.