Monday, September 29, 2008

Clinical Data collects $25M from private placement

By Mass High Tech Staff

Biotechnology company Clinical Data Inc. raised $25 million in a financing through a private placement through affiliates of Randal Kirk, chairman of Clinical Data’s board of directors. The Newton-based company stated the proceeds will used for “general working capital purposes.”

The agreement issues 1.5 million shares of common stock priced at the closing price of $16.44 per share (as of September 26, 2008), plus an additional 6.25 cents per share. The deal also includes issued warrants of 757,461 shares of common stock at $16.44 per share. No placement agent was used during the deal, officials said.

In August, Clinical Data (Nasdaq: CLDA) reported it had made a $66 million purchase for Adenosine Therapeutics LLC. a Virginia-based developer of drug products based on regulating adenosine receptors, to treat diseases including Type 2 diabetes, sickle cell anemia and asthma.

The company paid $11 million in cash, and entered into a $22 million, five-year promissory note and a separate $3.2 million, 32-month promissory note, all as part of the deal for Adenosine, which could also receive up to $30 million more in cash on achievement of certain regulatory and commercial milestones.

According to Drew Fromkin, president and CEO of Clinical Data, the purchase expands Clinical Data’s PGxHealth Division with Adenosine Therapeutics’ portfolio of adenosine receptor agonists and antagonists, which could produce targeted therapeutics and accompanying biomarker tests.

Clinical Data, which employs 459 workers, reported a 2008 net loss of $35.3 million on revenue of $34 million during its fiscal year ending March 31.