Nova takes 3.6 million shares public

January 28, 1992|By Timothy J. Mullaney VzB

Nova Pharmaceutical Corp. said today that it sold 3.6 million shares of stock to public investors for $8.50 apiece, raising more than $28 million to support the company in its drive to develop new drugs for inflammation and central nervous system disorders.

The company could stand to gain another $5.1 million, minus underwriting commissions, if underwriters led by Tucker Anthony Inc. sell an overallotment of 600,000 shares. Nova said it authorized the overallotment in case there is unexpectedly high demand for its shares.

Baltimore-based Nova, which has labored to commercialize scientific advances under the glare of watchful investors, needs money from offerings like this to develop its products.

Because its products have not yet reached the market, Nova, like many other biotechnology and drug development companies, has not turned a profit in its early years.

Two of the company's biggest stockholders -- drug giants SmithKline Beecham plc and Marion Merrell Dow -- also sold small pieces of their Nova holdings in the offerings. Both stockholders have said their decision to sell Nova stock is not a sign of dissatisfaction with the company's management.

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