ViroPharma Inc. is raising $150.7 million through a public offering to support business development activities and general corporate purposes, as well as to pay off a portion of the company's debt.

The Exton, Pa.-based firm priced 9 million shares at $16.75 per share, with net proceeds estimated to be about $142 million. ViroPharma could bring in an additional $22.6 million if underwriters exercise their option to purchase an extra 1.35 million shares in overallotments.

Shares of ViroPharma (NASDAQ:VPHM) gained $1.35 Wednesday, to close at $18.80.

Due to quiet-period rules, the company was not able to comment. But in its prospectus, ViroPharma said some of the proceeds might be used to repay or prepay debt from the 6 percent subordinated convertible notes due March 2007. Funds also could go toward acquiring, licensing or investing in products or technologies that complement ViroPharma's work in bacterial and viral infections.

Its marketed product is Vancocin HCl, an oral capsule formulation of vancomycin hydrochloride approved to treat antibiotic-associated pseudomembranous colitis caused by Clostridium difficile, and enterocolitis caused by Staphylococcus aureus. These include C. difficile-associated disease, a common hospital-acquired infection.

ViroPharma purchased U.S. vancomycin rights from Indianapolis-based Eli Lilly & Co. last November in a $116 million deal, more than half of which was paid through a private debt offering. For the first nine months of 2005, the company recorded vancomycin sales revenue of $92 million. (See BioWorld Today, Oct. 20, 2004.)

The company's clinical pipeline includes two antiviral candidates, starting with maribavir, in Phase II development for the prevention of cytomegalovirus infection in allogenic bone marrow transplant patients. Enrollment in the trial wrapped up last month, and preliminary data are expected to be available by the end of the first quarter of 2006.

A second product, HCV-796, an oral non-nucleoside polymerase inhibitor, demonstrated antiviral effects in adult hepatitis C patients in a recently completed Phase Ib trial. Further studies, expected to begin soon with results reported in the second quarter of 2006, will further assess the antiviral activity and pharmacokinetics, as well as test the tolerability of HCV-796 in combination with pegylated interferon.

HCV-976 is being developed with Wyeth Pharmaceuticals, a unit of Madison, N.J.-based Wyeth. Under that agreement, ViroPharma is responsible for 20 percent of the worldwide clinical development costs, and is entitled to a 50/50 profit-sharing arrangement in the U.S., and royalties on any sales outside North America.

A third clinical-stage product, pleconaril, aimed at treating the common cold and asthma exacerbations is no longer considered part of ViroPharma's pipeline. The company licensed rights to that candidate to Kenilworth, N.J.-based Schering-Plough Corp., in exchange for up to $65 million in milestone payments plus royalties. Pleconaril is a small-molecule inhibitor of picornaviruses and is designed to work by inhibiting the function of the viral protein coat necessary for virus transmission. (See BioWorld Today, Aug. 24, 2004.)

For the third quarter of 2005, ViroPharma recorded net income of $18.7 million, or 31 cents per share. As of Sept. 30, the company had cash, cash equivalents and short-term investments totaling $65.2 million. Goldman, Sachs & Co., of New York, is acted as the sole book-running manager, with Piper Jaffray & Co., of Minneapolis, acting as the joint lead manager, and Lazard Capital Markets LLC and SG Cowen & Co., both of New York, serving as co-managers.

• Dendreon's Offering Adds $45M

Seattle-based Dendreon Corp. is bringing in $45 million to support its biologics license application for its prostate cancer drug, Provenge, as well as early commercialization activities.

The company is offering 10 million shares, priced at $4.50 each. Underwriters have a 30-day option to purchase up to an additional 1.5 million shares of common stock to cover any overallotments. Net proceeds from the offering are expected to be about $48.2 million, if underwriters exercise the overallotment in full. In its prospectus, Dendreon said funds also will be used to support ongoing clinical trials, research and preclinical development activities, and for general corporate purposes, including working capital.

Banc of America Securities LLC is the book-running manager, with JMP Securities LLC and Lazard Capital Markets LLC, all of New York, acting as co-managers. The offering is expected to close on Dec. 12.

Shares of Dendreon (NASDAQ:DNDN) closed at $5.21 Wednesday, down 17 cents.

• SemBioSys Raising $10.3M Privately

Protein-based drug company SemBioSys Genetics Inc. entered an agreement with its lead underwriter to privately place about 2.6 million units for gross proceeds of about $10.3 million.

Toronto-based Orion Securities Inc. will place the $4 units - each consisting of one common share and one-half of one common share purchase warrant that entitles the holder to purchase one common share at a price of $5.50 for a period of 30 months following the close of the offering. SemBioSys also granted underwriters an option to acquire up to 50 percent of the number of units offered. If that option is exercised in full, proceeds to the company will total about $15.5 million.

SemBioSys, of Calgary, Alberta, focuses on developing, commercializing and producing protein-based pharmaceutical products based on a plant genetic engineering and oilbody-oleosin technology platform called the Stratosome Biologics System. Its lead product candidates are insulin and a cardiovascular drug, Apo AI. The offering is expected to close on or around Dec. 20. Shares of SemBioSys (TSE:SBS) rose C55 cents Wednesday, or 14.67 percent, to close at C$4.30 (US$3.71).

• Gastrotech Completes €2.3M Round

Danish firm Gastrotech Pharma A/S raised €2.3 million (US$2.7 million) in a private equity financing. Gastrotech, based in Copenhagen, focuses on developing therapeutics based on naturally occurring peptide hormones. Its clinical programs include GTP-010 for irritable bowel syndrome and GTP-200 for the treatment of cachexia and other catabolic syndromes.

Early last month, Gastrotech entered a binding agreement to become the European subsidiary of Miami-based DOR BioPharma. That transaction should close during the first quarter of next year. (See BioWorld Today, Nov. 3, 2005.)

Investors in that round included London-based Bioscience Managers Ltd. investing on behalf of 123Multinova Europe, and Copenhagen, Denmark-based Nordic Biotech. Jeremy Cook, executive chairman of BML, joined Gastrotech's board.