Panacos plans follow-on of 8 million shares; pricing expected Oct. 5

By Ronda Fears

Nashville, Sept. 28 - Panacos Pharmaceuticals Inc. announced Wednesday plans for a follow-on offering of 8 million shares. Syndicate sources said the deal is expected to price after the market closes Oct. 5.

SG Cowen & Co. and Bear, Stearns & Co. Inc. are joint bookrunners. Co-managers are Needham & Co. and Leerink Swann & Co.

There is a greenshoe of 1.2 million shares available.

Watertown, Mass.-based Panacos is developing the next generation of anti-infective products through discovery and development of small molecule oral drugs for the treatment of HIV and other major human viral diseases.

Net proceeds, which the company estimated at $80.6 million if the greenshoe is exercised, will be used to fund clinical trials, research and development, general corporate purposes, capital expenditures, acquisitions and working capital.

In late August, Panacos announced favorable mid-stage clinical data for its lead HIV drug, PA-457. Panacos, formerly known as V.I. Technologies, said the phase IIa study met its primary endpoint with a statistically significant reduction in the level of HIV in the blood.

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