Advanced Life Sciences IPO, lowered to $8-$9 per share from $11-$13, delayed

Nashville, July 29 - Advanced Life Sciences Inc.'s initial public offering has been put on the back burner, having failed to price at a lower range Thursday. It now is at a status "to be determined" by market conditions, according to source working on the deal.

The issue had been boosted to 5 million shares from 4.5 million shares and the price range reduced to $8 to $9 per share from original plans to issue at $11 to $13 each, but the deal was still unable to get off after Thursday's close as had been planned.

Underwriters are C.E. Unterberg Towbin, ThinkEquity Partners LLC and Merriman Curham Ford & Co.

Woodbridge, Ill.-based Advanced Life Sciences is focused on the discovery, development and commercialization of novel drugs in the areas of infectious disease, inflammation and oncology. The company has a pipeline of clinical and preclinical product candidates for the treatment of respiratory tract infections, human immunodeficiency virus, acute respiratory distress syndrome and cancer.

The company has four product candidates that are either in clinical development or approved to begin clinical development, and seven additional product candidates that are in preclinical development. The company has arrangements with Abbott Laboratories, Sarawak MediChem Pharmaceuticals Inc. and others.

Of total proceeds, together with existing cash, $32 million is earmarked to continue clinical development of cethromycin and to make related milestone and license payments to Abbott Laboratories. In addition, proceeds will be used to repay about $6 million of debt and the remainder for general corporate purposes, including the continued development of other product candidates and working capital.

For the six months ended June 30, Advanced Life Sciences said in its registration statement that it posted a net loss of $1.66 million compared with a net loss of $1.12 million in the year-before period and an operating loss of $1.46 million versus an operating loss of $1.03 million a year earlier.

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