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news.Biotechnology company Critical Therapeutics has agreed to sell over nine million shares, together with additional warrants, for a total purchase price of $54.5 million. The proceeds will be used to finance the launch of its investigational asthma drug Zyflo.
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The company will sell 9.9 million shares of common stock at a price of $5.48 per share, together with warrants to purchase approximately 3.5 million additional shares of common stock at an exercise price of $6.58 per share. The transaction is currently scheduled to close on June 20, 2005.
The net proceeds from this private placement will be used to launch Critical’s investigational asthma drug Zyflo Filmtab (zileuton tablets) pending regulatory approval for a change in manufacturing site. The money will also help further the clinical and preclinical development of its existing product candidates whilst expanding drug discovery and development initiatives.
Critical purchased Zyflo from Abbott Laboratories in 2004. The company expects to launch the tablets in the second half of 2005.
Zyflo tablets are designed to decrease the number of acute attacks experienced by asthma patients whilst lessening the symptoms associated with the illness. Data from clinical studies evaluating the efficacy of Zyflo indicates the drug can help control symptoms of asthma in adults and children over the age of 12 years suffering from moderate to acute forms of the illness.
Following the announcement of the company’s plans, shares rose two cents to $5.45.