Cytogen to Sell Securities

The company wants to raise $20 million.
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Cytogen

(CYTO)

, a manufacturer of cancer therapies, announced plans to raise $20 million through a private placement of warrants and common stock.

The company has entered purchase agreements with institutional investors for the sale of around 7.1 million shares and 3.5 million warrants. The warrants have a term of five years and an exercise price of $3.32 a share.

Among other things, Cytogen plans to use the proceeds to support the launch of its drug Caphosol, advance its clinical development programs and pursue additional licensing opportunities.

Separately, Cyotgen reported results from an early clinical trial of its drug Quadramet. When used with hormone therapy and radiation in certain patients with prostate cancer, the treatment was well tolerated and showed preliminary antitumor activity.

The patients involved in the trial are at high risk for having the disease spread to their bones, but none showed clinical or radiographic signs of bone metastases at the time of treatment.

Shares of Cytogen fell 7.9% to $2.55.