Nearly six months after pulling plans for an estimated $69 million stock offering due to market conditions, Adventrx Pharmaceuticals Inc. said it is raising $40 million to support its cancer and infectious disease drug pipelines.

The San Diego-based firm received signed subscription terms from investors to purchase 14.5 million shares of its common stock priced at $2.75 each. ThinkEquity Partners LLC, of San Francisco, acted as lead placement agent, and New York-based Fortis Securities LLC acted as co-placement agent for the transaction, expected to close on or about Nov. 8.

Adventrx could not be reached for comment, but in its prospectus the company said net proceeds are expected to total $37.3 million and will be used for research and development programs, including clinical trials and commercial launch preparation.

In June, the firm began a pivotal Phase III study of its chemotherapy-enhancing drug, CoFactor, in metastatic colorectal cancer. That trial is designed to randomize 1,200 patients to receive either CoFactor, a folate-based biomodulator, or leucovirin, both in combination with 5-fluorouracil (5-FU) and Avastin (bevacizumab, Genentech Inc.) According to a special protocol assessment accepted by the FDA in May, the primary endpoint is progression-free survival, and secondary endpoints will measure response rates, overall survival and the incidence and severity of adverse events. (See BioWorld Today, May 23, 2006.)

CoFactor also is being evaluated in a Phase IIb study in combination with 5-FU vs. leucovirin plus 5-FU as a first-line treatment of metastatic colorectal cancer. That study completed enrolling 300 patients last month and is expected to yield data in the second half of next year.

Elsewhere in its pipeline, Adventrx is advancing several oncology and infectious disease candidates gained through its April acquisition of Carlsbad, Calif.-based SD Pharmaceuticals Inc., including products based on SD's nano-emulsion technology aimed at easing the delivery of existing drugs that are known to be vein-irritating or difficult to dissolve.

The company is developing ANX-530, an emulsion formulation of approved cancer drug vinorelbine. Also in cancer, Adventrx has ANX-513, a paclitaxel emulsion candidate, and ANX-514, a docetaxel emulsion candidate, and in the infectious disease area, the company is working on emulsion formulations of approved antibiotics clarithromycin and vancomycin.

Last month, Adventrx licensed U.S. rights to another antiviral gained from the SD merger to Research Triangle Park, N.C.-based Theragenex LLC. That product, intranasal/topical antiviral ANX-211, demonstrated preclinical efficacy against viruses that cause the common cold, influenza and other respiratory tract viral infections. In exchange for ANX-211 rights, Theragenex agreed to pay Adventrx a $1 million licensing fee, a $1 million milestone payment for its first launch and another $1 million for each additional launch, with a royalty rate between 15 percent and 20 percent on product sales.

Adventrx's pipeline also includes Thiovir, an oral prodrug of the intravenously administered antiviral product, foscarnet, which is approved for opportunistic infections in HIV patients.

Adventrx reported net income of $2.8 million, or 3 cents per share, for the second quarter. As of June 30, it had cash, cash equivalents and short-term investments of $18.8 million.

The company announced an offering in May to sell 15.5 million shares of common stock, which were trading around $4.84 at the time and would have netted about $69 million at that price. But a week later, Adventrx withdrew the offering, citing adverse market conditions. (See BioWorld Today, May 23, 2006.)

The company's shares (AMEX:ANX) closed at $2.79 Friday, down 28 cents.

In other financings news:

• Avanir Pharmaceuticals Inc., of San Diego, is raising $15 million through definitive purchase agreements with institutional investors. The company is offering about 5.3 million shares of Class A common stock priced at $2.85 per share, and purchasers also will receive warrants to buy about 1.1 million shares of Class A common stock at an exercise price of $3.30 each. New York-based Rodman & Renshaw LLC acted as placement agent. Net proceeds to the company are expected to total about $14.4 million. Avanir received an FDA approvable letter last week for Zenvia asking for additional safety and efficacy data, and that news pushed down the company's stock (NASDAQ:AVNR) by 46 percent to close at $3.98. Shares closed Friday at $3.10, down 20 cents. (See BioWorld Today, Nov. 1, 2006.)

• Ciphergen Biosystems Inc., of Fremont, Calif., entered separate agreements for certain holders of its 4.5 percent convertible senior notes due 2008 to exchange $27.5 million aggregate principal amount of outstanding notes for $16.5 million aggregate principal amount of a new series of 7 percent convertible senior notes due 2011 and $11 million in cash. The transactions are contingent upon completing the previously announced sale of Ciphergen's life science research business to Bio-Rad Laboratories Inc., of Hercules, Calif.

• Metabasis Therapeutics Inc., of San Diego, secured access to up to $50 million in capital through a committed equity financing facility (CEFF) with Kingsbridge Capital Ltd. Under the terms, Metabasis, at its discretion, can sell shares of common stock to Kingsbridge over the next three years in tranches of up to the lesser of $10 million or a specified percentage of the company's market capitalization at the time of the draw-down. Metabasis is under no obligation to draw down funds, and the CEFF is intended to provide the company with financing flexibility as it continues advancing its five clinical-stage candidates against metabolic and liver diseases. Shares of Metabasis (NASDAQ:MBRX) gained 8 cents Friday to close at $7.01.