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Biotech stock deals top $100M July 21, 2003 Philadelphia Business Journal Although the cash is not pouring in like it did three years ago, money from private investors is slowly and steadily trickling into the local life-sciences sector. Last week, Immunicon Corp. of Huntingdon Valley completed the second-largest biomedical private-stock placement this year when it raised $25 million from a consortium of investors. Since April, an additional $80 million has been raised by area life-sciences companies through private placements. G. Steven Burrill, CEO of Burrill & Co., noted that nationally, the biotechnology industry stocks outperformed both Nasdaq and the Dow Jones industrial average in June "based on solid achievements with high-visibility product approvals, clinical successes, capital infusions and progress on key political issues (such as accelerating the Food and Drug Administration's review of new drug applications)." " Faith in biotech has returned," Burrill said. "We're seeing momentum in every sector, particularly those that have a direct impact on human health." The Burrill Biotech Select Index -- which tracks 20 of the nation's largest publicly traded biotech firms -- rose 3 percent in June and is up 37 percent year to date. The Dow and Nasdaq each gained less than 2 percent for the month and were up 8 percent and 22 percent, respectively, year to date, Burrill noted. Locally, Doylestown-based Discovery Laboratories landed the largest deal so far this year when it raised $27.5 million in June. Other biotech companies selling stock to private investors have included: Orchid BioSciences Inc. of Princeton, $16 million in April; Orthovita Inc. of Malvern, $13.7 million in June; Cytogen Corp. of Princeton, $5 million in June and $10 million in July; Genaera Corp. of Plymouth Meeting, $5 million in June; and Antares Pharma Inc. of Exton, $2 million in July. Last week, Vicuron Pharmaceuticals Inc. of King of Prussia began a public offering of 5 million shares of its common stock. In addition, West Chester-based Cephalon Inc. sold $600 million in subordinated notes, which it is using to refinance its existing debt at lower interest rates. Also raising funds through the sale of convertible subordinated debentures is Center City-based Hemispherx Biopharma Inc., which sold a total of $11 million in bonds through two separate deals to the same investors in March and last week. The company's platform technologies use a highly sensitive analysis system, based on a simple blood test, that the company has created to detect, count and characterize solid tumor cancer cells. Immunicon says its technology can identify one suspect cancer cell in a one-milliliter sample of blood, making it substantially more sensitive than conventional techniques used to diagnose cancer. Edward L. Erickson, chairman, president and CEO of Immunicon, said he believes the climate for investing in life sciences has improved. " In our particular case, we didn't have to go to outside investors [to raise capital]," he said. "We went to our existing investors." Participants in the Immunicon offering, in addition to Burrill & Co., were TL Ventures, Claneil Enterprises Inc., Johnson & Johnson Development Corp., Canaan Partners, Anthem Capital, Foundation Medical Partners, Wheatley Partners, MDS Capital Corp. of Canada, the Cleveland Clinic Foundation, equity4Life and MedCapital Investments. Erickson said Immunicon plans to use the proceeds from its stock offering for commercializing its proprietary platform technologies, conducting clinical trials to expand indications for its technology in cancer diagnostics and developing products in fields outside of cancer. James G. Murphy, senior vice president and chief financial officer of Immunicon, said last week's stock sale brings the total amount of money the company has raised to more than $100 million. " Of that amount, about $86 million is equity," he said. John George can be reached at jgeorge@bizjournals.com. © 2003 American City Business Journals Inc. |