Biotech Values

[apljack]

CPRS: Share price hammered as the co. announces an offer in an attempt to raise operating cash. I track this after someone posted about the co. It is down better than 34% on the news. Their lead candidate, CPP-109 in in phase II-B for cocaine addiction and if memory serves, they are working on this phase II-B in the VA system. Reading the posts on the YMB leads one to think that the longs there have NO faith in mgmt, and there was a clear mass exodus today on the news of dilution.

http://www.bizjournals.com/southflorida/news/2012/05/24/catalyst-pharma-plans-4m-offering.html?ana=yfcpc

Catalyst Pharmaceutical Partners announced a stock offering that could raise $4 million.

The Coral Gables-based developmental-stage company (NASDAQ: CPRX) plans to issue 6 million units, with each unit consisting of one share of common stock plus a warrant to purchase another share in the future, for 80 cents each. The five-year warrants can be used to purchase Catalyst shares for $1.04.

Cowen and Co. is the book-running manager for the offering, while Roth Capital Partners is the co-manager. The company expects the offering to close by May 30.

Catalyst said it would use the $4 million in proceeds, which is net of expenses from the offering, to fund its clinical trials and the potential commercial launch of its drugs.

The company has two drug candidates. CPP-109 is in a Phase II(b) study for the treatment of cocaine addiction, and Catalyst hopes the drug could treat other forms of addition as well. Its CPP-115 is being evaluated for both addiction treatment and epilepsy. A Phase I(a) study for CPP-115 recently found that patients tolerated the drug without harmful effects. A future trial would test the drug’s effectiveness.

The company lost $1.09 million in the first quarter, following its $6.39 million loss in 2011. It has no revenue.

Catalyst shares fell 15 cents to 72 cents in early morning trading. The 52-week high was $2.25 on June 10. The 52-week low was 75 cents on April 20.