NicOx launches $130M euro capital increase

French drugmaker NicOx SA has launched a capital increase of approximately 130.0 million euros ($168.2 million). The company is offering new ordinary shares at a subscription price to be announced on January 29 to which existing NicOx shareholders will have preferential subscription rights. The capital increase will allow NicOx to further support the development of its drug candidates and, in particular, its lead compound, the anti-inflammatory drug naproxcinod, which is in Phase III trials for the treatment of the signs and symptoms of osteoarthritis.

NicOx noted that the holders of preferential subscription rights will be able to sell all or part of these rights if they decide not to subscribe, or to subscribe only in part for new shares. Shareholders will also be entitled to subscribe for additional new shares on a reductible basis. The preferential subscription rights will be allocated on January 30 2007 for shareholders who are registered as owning shares at the close of trading on January 29, while the subscription period will be open from January 30 to February 5, inclusive. During this time, the preferential subscription rights will be listed and negotiable on Eurolist by Euronext Paris. The capital increase is being underwritten by a syndicate of banks lead-managed by Merrill Lynch International with UBS Investment Bank as joint global co-ordinators and joint bookrunners.