Inhibitex aims for $23 million; BioTie secures SEDA; Discovery settles A$13 million placement

By Stephanie N. Rotondo

Portland, Ore., Oct. 23 - Biotech and biopharma were the dominant sectors in Friday's PIPEs market.

Inhibitex Inc. announced that it would raise $23 million from a private placement of equity units. A company spokesperson said the funds would be used to advance the company's two most advanced drug candidates.

Meanwhile, BioTie Therapies Corp. secured a €20 million standby equity distribution agreement with a unit of Yorkville Advisors. The funds will be used as working capital.

Discovery Metals Ltd. took in A$13.1 million from a private placement of equity, the company announced. Proceeds will be used to complete a feasibility study, according to a press release.

Also, Columbia Laboratories Inc. said it would conduct an $11.77 million private placement of units. The funds could be used for clinical trials, the company said.

And in other completed deals, PhotoMedex Inc. pocketed $2.7 million from a private stock sale.

Inhibitex aiming for $23 million

Inhibitex is seeking to raise $23 million from a private placement of units, according to a press release.

The units will be sold at $1.28 each, with each unit consisting of one common share and one warrant equal to 0.45 common shares. Whole warrants are exercisable at $1.46 for four years.

All told, the company expects to issue 18 million shares and warrants equal to an additional 8.1 million shares.

Investors in the deal include QVT Funds, OrbiMed Advisors, New Enterprise Associates and Great Point Partners.

Proceeds will be used for research and development, working capital and general corporate purposes. Settlement is expected by Oct. 28.

Russell H. Plumb, chief executive officer, told Prospect News that he was pleased the company was now in a position to raise the funding.

"Up until about two or three months ago, it was kind of a nuclear winter, as far as raising money," he said. As the company's stock price has increased, "we are pleased [with the financing terms] and we think most shareholders will be pleased with it."

Plumb noted that the proceeds would help the company to "advance out two most advanced programs," one of which is already in phase 2 trials and another that is expected to begin trials soon.

"We are now very well capitalized to get those programs" to a point where they can produce value for the company, he said.

Inhibitex's shares (Nasdaq: INHX) fell $0.0801, or 6.51%, to $1.1499. Market capitalization is $50.08 million.

Inhibitex is an Alpharetta, Ga.-based biopharmaceutical company focused on developing products to treat serious infectious diseases.

BioTie secures SEDA

BioTie Therapies secured a €20 million standby equity distribution agreement with YA Global Master SPV Ltd., the company said.

According to the terms of the SEDA, BioTie will sell shares to YA Global in tranches up to €50,000 for the first tranche, €100,000 for the second tranche and €300,000 for the subsequent tranches.

The price per share will equal 95% of the lowest daily volume-weighted average stock price for the five trading days following the draw request.

Proceeds will be used for working capital.

"We believe the agreement with YA Global gives BioTie the flexibility and access to capital that has become critical in today's marketplace," commented Timo Veromaa, CEO, in a press release.

"This vehicle is an additional resource that can help move our proprietary clinical programs forward to key inflection points. Yorkville has a proven track record in providing European companies with equity line commitments and we are glad to be working with the Yorkville team."

Added Michael J. Nowak, head of the health care group and a managing director at Yorkville: "Yorkville provides flexible and innovative financing tools for public healthcare and technology companies."

"We are very pleased to be making our first SEDA investment in Northern Europe with BioTie Therapies Corp., especially given the large unmet medical need and market potential addressed by BiotTe Therapies' multiple compounds in development, and the strength of their strategic partners and management team."

BioTie's equity (Pink Sheets: BORPF) ended unchanged at $1.14, where it last traded on Jan. 19.

BioTie Therapies is a Turku, Finland-based biotech company focused on treatments for dependence disorders like alcoholism and pathological gambling, as well as inflammatory diseases and thrombosis.

Discovery settles equity placement

Discovery Metals wrapped an A$13.1 million private placement of equity, the company said in a news release.

The company sold 29.1 million ordinary shares at A$0.45 per share.

Proceeds will be used for the completion of the company's bankable feasibility study on its Boseto Copper project in Botswana.

"It is very pleasing to receive continued support from investors and strong recognition for the economic strength of the Boseto Copper Project," said Brad Sampson, managing director, in the release.

"Our continued positive news flow during October, including the Boseto Copper project bankable feasibility study economics update, the Dikoloti Project joint venture and upgrade of the copper-silver resource at our Zeta Prospect, is evidence of our continued progress and commitment to completing our projects in Botswana.

"We are now well placed to complete the bankable feasibility study in March 2010 and progress to the funding and project stage of the Boseto Copper Project," Sampson concluded.

Discovery's stock (Australia: DML) ended at A$0.53. Market capitalization is A$102.86 million.

Discovery Metals is a Brisbane, Australia-based nickel and copper exploration and development company.

Columbia Labs to raise $11.77 million

Columbia Laboratories announced it would raise up to $11.77 million via a registered direct offering of stock and warrants.

The Livingston, N.J.-based company intends to sell approximately 10.9 million common shares and warrants for an additional 5.45 million common shares. The stock and warrants will be sold in units at $1.08 each.

Each unit will contain one common share and one half-share warrant.

Proceeds from the financing will be used for general corporate purposes, "including funding the completion of its ongoing clinical trial to reduce the risk of preterm birth in women with a short cervix at mid-pregnancy, the development of its next generation products for infertility and prevention of preterm birth in women with a short cervix, its other clinical development and other research and development activities, internal and/or collaborative sales, marketing and distribution expenditures, capital expenditures and working capital needs," according to a press release.

Settlement is expected by Oct. 28.

Calls seeking comment were not returned Friday.

Columbia's stock (Nasdaq: CBRX) fell 25 cents, or 19.68%, to $1.02. Market capitalization is $56.37 million.

Columbia Laboratories is a pharmaceutical company focused on developing and commercializing products for the women's health care and endocrinology markets that use its novel bio-adhesive drug delivery technology.

PhotoMedex closes stock offering

PhotoMedex, a Montgomeryville, Pa.-based developer of proprietary excimer laser and fiber optic systems and techniques directed toward dermatological applications, said it took in $2.7 million from a private placement of equity.

The company sold 4.17 million common shares at $0.65 per share.

Proceeds will be used for general working capital purposes.

Calls seeking comment were not returned Friday.

PhotoMedex's equity (Nasdaq: PHMD) gained 4 cents, or 6.06%, to $0.70. Market capitalization is $6.68 million.

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