Stock Sale Planned by NeoTherapeutics Inc.
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NeoTherapeutics Inc. plans to sell 3.5 million shares of common stock to raise money for trials of its experimental Alzheimer’s treatment, Neotrofin, and other drugs in development, according to regulatory documents filed Thursday.
The Irvine-based company announced Wednesday that Neotrofin improved brain function in 72% of patients in a clinical trial. Still, the drug has yet to go through the final phase of human testing required to submit a new drug application with the Food and Drug Administration.
NeoTherapeutics would raise $46.6 million in its secondary offering, based on the price of the stock Thursday. The shares, which have risen 64% over the past six months, closed at $13.31, up 19 cents.
The company will use $25.5 million for various projects in developing Neotrofin, plus another $3 million for research and development on other drug candidates. The rest of the stock sale proceeds will be set aside for other general purposes, according to the registration statement filed with the Securities and Exchange Commission.
NeoTherapeutics hired Joseph Charles & Associates Inc. to underwrite the stock sale, which will increase the company’s outstanding stock to 10.2 million shares, according to the filing.
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