Agouron Pharmaceuticals Files for Stock Sale
Agouron Pharmaceuticals has filed a registration statement with the Securities and Exchange Commission to sell 1.5 million shares of its common stock. If the newly issued shares sell at Monday’s closing price of $11.50 each, the offering could raise as much as $17.25 million.
Agouron, which uses high-powered computers for “rational design” of pharmaceuticals, has yet to market a product, although it is working in a number of areas, including drugs to combat cancer and AIDS. Agouron held its initial public stock offering in 1987, raising $6.25 million.
For the fiscal year ended June 30, Agouron lost $4.7 million on revenue of $2.6 million, versus a loss of $3 million on revenue of $1.3 million the previous fiscal year. The company has 2.6 million shares outstanding.
In addition to the 1987 initial stock offering, Agouron raised $5 million in a private equity capital placement last fall from three venture capital firms: Burr, Egan & Deleage, Venkol Ventures and Alan Patricof & Associates.
The company also established a research arrangement with Eli Lilly last year that called for Lilly to buy 250,000 shares of Agouron for $3.25 million. In exchange, Lilly has rights to manufacture products that Agouron develops. A similar research arrangement with General Foods had lapsed in recent months.
Underwriters for the stock offering are PaineWebber and Hambrecht & Quist. Agouron stock closed down $.50, at $11.50 a share, in over-the-counter trading Monday. Proceeds from the offering will finance research and development.
