BioWorld International Correspondent

Active Biotech AB is raising SEK168.7 million (US$23.1 million) in a discounted rights issue that has received support from its two biggest shareholders.

MGA Holding, which holds 28.9 percent of its stock, will take up its full allocation. Nordstjernan, which has an 8 percent stake, also will take up its full allocation and, furthermore, has guaranteed to subscribe for any additional shares not taken up by other shareholders.

Lund, Sweden-based Active Biotech is offering about 5.6 million shares, priced at SEK30 per share. Current shareholders are entitled to subscribe for one new share for every six shares held. In addition, purchasers of convertible debentures, issued last September, also will be entitled to convert those into shares.

Active Biotech plans to use the proceeds to fund its clinical programs.

"The important thing for us here is to secure the further development of the projects that are not yet out-licensed," Chief Financial Officer Hans Kolam told BioWorld International. Those include TASQ, undergoing a Phase I trial in prostate cancer; Anyara, in a Phase I trial in non-small-lung cell cancer; and 57-57, also in a Phase I trial, for systemic lupus erythematosus. Active Biotech has two other clinical-stage projects that have been partnered: the oral multiple sclerosis treatment laquinimod, which was licensed last year by Teva Pharmaceutical Industries Ltd., of Jerusalem, and RhuDex, a rheumatoid arthritis drug partnered with Avidex Ltd., of Abingdon, UK.

Two other projects are in preclinical work, CCR-1 and I-3D, both of which are intended for autoimmune indications.

"They're still on the shelf, so to speak. We have a pretty broad portfolio as it is. We will restart those projects when we have the financial possibility to do so," Kolam said.

The upcoming fund raising is the company's third in the past two years. It raised SEK216.7 million in a discounted rights offering in 2003 and a further SEK150 million in an issue of convertible debentures last year. (See BioWorld International, Sep. 22, 2004.)

The company, which reported SEK152 million in cash and equivalents on March 31, said it now is funded until 2009, although that forecast anticipates milestones from current agreements, as well as new licensing agreements.

Avanza Fondkommission AB is acting as transfer agent in connection with the transaction. The subscription period runs from June 17 through July 1.