Bullish Chiroscience Hopes To Raise L40 Mill Placing

UK biotechnology company Chiroscience is hoping to raise around L40 million ($60.3 million) in a placing and open offer. 10.3 million new shares have been conditionally placed at a price of 410 pence each. The open offer is on a 1-for-7 basis and should open on June 4.

The majority of the proceeds from the placing and open offer, L33.6 million net of expenses, will be used to fund development of Chiroscience's improved single isomer drug programs.

Chiroscience announced pretax losses of L11.6 million for the financial year ended February 29, 1996, compared with a year- earlier loss of L9.23 million. Sales surged ahead to just under L5 million, from L1.7 million in the previous year. The firm spent L12.1 million on R&D during the year, up 39%. Revenues included income from technical collaborations with a range of drug companies, sales of chiral compounds and intermediates, and the firm's first milestone payment from a research and marketing collaboration on one of its improved single isomer drugs.