EPIX Pharmaceuticals Inc. (Nasdaq: EPIX), which merged with Israel's Predix Pharmaceuticals Holdings about six months ago, is raising $16.3 million in a private placement. The shares will be offered at $3.10 per share, a discount to its closing price of $3.80 per share yesterday. The firm noted that it would use the proceeds primarily to fund clinical trials.
In April of 2006 EPIX Pharmaceuticals Inc. (Nasdaq: EPIX) merged with Predix Pharmaceuticals Holdings in a merger between equals, valuing each side at $90 million. Predix Pharmaceuticals shareholders received an additional $35 million in milestone payments.
Predix Pharmaceuticals' pipeline, which includes products with blockbuster potential, today represents the main activities of the combined firm. The main contribution of EPIX is its cash position, and Vasovyst, a treatment which is aimed at a small market and is facing difficulties gaining FDA approval. However, in contrast to Predix, it already records sales.
After the merger decision Predix signed two large contracts with GlaxoSmithKline (NYSE; LSE: GSK) and with Amgen for the sales of its products, for amounts that can reach a billion dollars, if they meet specific milestones.
The share has actually declined since the merger, from $4.80 before the announcement to its current level.
The firm trades today at a $119 million market cap.
Published by Globes [online], Israel business news - www.globes-online.com - on November 13, 2007
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