Oscient Pharmaceuticals Corp. said it is selling $60 million of 3.5 percent convertible notes due in 2011, an increase from the original plan to sell $50 million in notes.

The notes are convertible into common stock at $13.50 per share. The new notes also would be convertible at the option of the company if the closing price of its stock exceeds the autoconversion price of $17.55 per share for at least 20 trading days during any consecutive 30-trading-day period. The sale is expected to close Tuesday.

Oscient's stock (NASDAQ:OSCI) closed at $6.40 Thursday, unchanged.

Piper Jaffray & Co. is serving as the placement agent for the offering. It also was deal manager for a separate exchange offer of outstanding convertible notes. As a result, the company will issue about $165 million in aggregate principal amount of new 3.5 percent convertible senior notes due 2011.

Oscient markets two FDA-approved products through its national primary care sales force. One is Antara (fenofibrate) capsules, approved for the adjunct treatment of hypercholesterolemia (high blood cholesterol) and hypertriglyceridemia (high triglycerides) in combination with diet. The other is Factive (gemifloxacin mesylate) tablets, for treating acute bacterial exacerbations of chronic bronchitis and community-acquired pneumonia of mild to moderate severity. Oscient also has a late-stage antibiotic candidate, Ramoplanin, in development.

In other financing news:

• Clinuvel Pharmaceuticals Ltd., of Melbourne, Australia, raised A$26 million (US$21.5 million) in a private placement of about 24.3 million shares with Australian and European institutions. Clinuvel also announced a share purchase plan to allow Australian shareholders to participate at the same price. The proceeds will be used to fund clinical trials of CUV1647, a photo-protective agent being developed to prevent a range of UV-related skin disorders, as well as is for oncology-related indications.

• Carrington Laboratories Inc., of Irving, Texas, entered into definitive agreements with institutional investors on an $8 million private placement of convertible debentures and common stock warrants. The first tranche of the deal is about $4.4 million, and was expected to close Thursday. The second tranche of about $3.6 million is contingent upon Carrington obtaining shareholder approval and other customary closing conditions. The 10 percent senior secured convertible debentures from the first closing are convertible into shares at an initial price of $2.01 each. Terms on the second closing will be determined at that time. Carrington also will issue about 2.99 million seven-year warrants exercisable at $2.01 in the first closing. Carrington's stock (NASDAQ:CARN) fell 20 cents Thursday, or 10.2 percent, to close at $1.77.

• Biodel Inc., of Danbury, Conn., set the terms for its proposed initial public offering at 5 million shares at $14 to $16 per share. It would raise $75 million if the IPO priced at the middle of that range. It registered in February to raise up to $86.25 million in an IPO. Its lead product, in Phase III trials, is VIAject, an injectable form of recombinant human insulin. (See BioWorld Today, Feb. 13, 2007.)