Cyclacel Takes the Money and Runs: BioBuzz - TheStreet

Cyclacel Takes the Money and Runs: BioBuzz

Drugmaker takes advantage of zooming stock price to raise $9 million.
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SAN FRANCISCO, Calif. (

TheStreet

) --Well, that didn't take very long…

Cyclacel Pharmaceuticals

(CYCC) - Get Report

said it raised $9.3 million in two separate financing deals.

As expected, Cyclacel CEO Spiro Rombotis is taking advantage of the huge run in the stock late last week to pad the company's cash coffers to help fund future development of its two cancer drugs. I wrote about the

likelihood of a financing

from Cyclacel coming out of the J.P. Morgan Healthcare Conference on Sunday.

Cyclacel intends to submit a phase III study proposal to the U.S. Food and Drug Administration for its leukemia drug sapacitabine in the first quarter.

Cyclacel sold 2.85 million units, each unit consisting of one share of the company's common stock and a cash warrant to purchase 0.25 shares of common stock, at a purchase price of $2.51 per unit. The warrants are priced at $3.26 per share.

Cyclacel shares were down about 4% to $2.84 in pre-market trading.

Biotech News on Cusp of J.P. Morgan Confab

(At 8:24 AM EST)

TheJ.P. Morgan Healthcare Conference kicks off this morning and per tradition, biotech firms mark the occasion with news-filled press releases -- lots of them.

  • AMAG Pharmaceuticals (AMAG) - Get Report pre-announced fourth quarter Feraheme sales of $12 million and $13 million -- nicely above Street expectation of around $9 million. Furthermore, the company said that only about $1 million in sales of the intravenous iron replacement came from recognition of previously disclosed $11.5 million in deferred revenue. In other words, Feraheme demand was better than expected.
  • Vertex Pharmaceuticals (VRTX) - Get Report narrowed the timeline for the release of top-line results from its first phase III study of the experimental hepatitis C drug telaprevir to the second quarter. Previously, Vertex had said to expect the data in the first half of 2010.
  • BioCryst Pharmaceuticals (BCRX) - Get Report signed two new international marketing partners for its H1N1 flu drug peramivir, but the company failed to announce any new stockpiling contracts.Merck Serono has been brought on to try to sell peramivir in Europe and Russia while Hikma Pharmaceuticals will sell peramivir in the Middle East and North Africa, excluding Israel.Despite the new marketing partners, BioCryst has been unable to close any significant stockpiling contracts for peramivir outside the U.S. Some BioCryst bulls were hoping the company would announce today the approval of peramivir in Japan, however that doesn't appear to be happening quite yet.
  • InterMune (ITMN) said it was changing the way it doses its experimental hepatitis C drug RG7227 (formerly ITMN-191) to patients. Moving forward, InterMune will use a lower dose of RG7227 that is "boosted" with the addition of a drug known as ritonavir in order to make its effect last longer in patients' bloodstreams. As a result, InterMune said boosted RG7227 can be administered twice a daily or perhaps once a day. The company will be altering ongoing studies of RG7227 in hepatitis C to include the addition of the ritonavir boosting agent.
  • Vivus (VVUS) - Get Report said its experimental erectile dysfunction drug works within 15 minutes of dosing, according to a new analysis if previously released results of a phase III study.
  • Viropharma (VPHM) said 2010 sales guidance for its hereditary angiodema drug Cinryze of between $145 million and $165 million. The company said it will be profitable in 2010 but would not offer detailed earnings guidance until later in the first quarter.

-- Reported by Adam Feuerstein in San Francisco.

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Adam Feuerstein writes regularly for TheStreet.com. In keeping with TSC's editorial policy, he doesn't own or short individual stocks, although he owns stock in TheStreet.com. He also doesn't invest in hedge funds or other private investment partnerships. Feuerstein appreciates your feedback;

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