REGENERON's $ 48 MIL. INITIAL PUBLIC OFFERING WOULD MATCH AMGEN FUNDING
REGENERON's $ 48 MIL. INITIAL PUBLIC OFFERING WOULD MATCH AMGEN FUNDING of up to $ 53 mil. for the three-year-old neurobiology start-up's neurotrophic drug R&D activities, the firm disclosed in a Feb. 20 Securities & Exchange Commission "red herring" filing. With the proposed offering, Regeneron Pharmaceutical is seeking to double the potential $ 53 mil. cash infusion from Amgen under a multi-year collaborative agreement announced in September ("The Pink Sheet" Sept. 10, T&G-10). Initially, Amgen's contribution was estimated at $ 26 mil. Amgen's investment as of December 1990 was $ 18.5 mil., comprised of $ 2.5 mil. in product development funding, $ 1 mil. in research progress payments and $ 15 mil. for a 7.3% equity stake in the company. The total could reach $ 53 mil. over a five- year period: $ 5 mil. per year for R&D funding and $ 13 mil. in research milestone payments. Amgen and Regeneron will jointly conduct preclinical and clinical studies of Brain-Derived Neurotrophic Factor (BDNF), Neurotrophin-3 (NT-3) and Ciliary Neurotrophic Factor (CNTF). Regeneron said that other firms that have filed patents for NT-3 and CNTF include Takeda Chemical, Synergen/Syntex and the University of California. The most likely applications for initial clinical trials include Parkinson's disease; motor neuron diseases (including amyotrophic lateral sclerosis or Lou Gehrig's disease); certain peripheral neuropathies; trauma to peripheral nerves; and retinal degeneration due to glaucoma, the filing states. Alzheimer's disease, traumatic brain injury and spinal cord injury are more likely candidates for the second phase of clinicals, due to the difficulty of quantifying efficacy, Regeneron said. Regeneron is planning to offer three mil. shares of common stock with an assumed initial public offering price of $ 17.50 per share. Estimated net proceeds of $ 48 mil. from a successful offering would fund operations into 1994, Regeneron said. In addition to funding R&D, the proceeds may be used for the establishment of manufacturing facilities and a sales and marketing force. The Tarrytown, N.Y.-based firm currently employs 91 full-time employees, 84 of whom are directly involved in research and development, and has 36,000 square feet of office and lab space.
You may also be interested in...
Newly released Medicare Part D data sheds light on the sales hit that branded pharmaceutical manufacturers will face when the coverage gap discount program gets under way in 2011
FDA appears headed for a showdown with clinicians and the pharmaceutical industry over the proposed new clinical trial endpoints for acute bacterial skin and skin structure infections, the guidance's approach for justifying a non-inferiority margin and proposed changes in the types of patients that should be enrolled in trials
Specialty drug maker Shire has quietly begun scouting deals with a brand-new $50 million venture fund, the latest of several in-house investment arms to launch with their parent company's pipelines, not profits, as the measure of their worth
Sign in to continue reading.
Need a specific report?
1000+ reports available
New to Pink Sheet?
Start a free trial today!
Register for our free email digests: