Connetics Raises $20 Million in Private Stock Placement

Biopharmaceutical company Connetics Corp. (Palo Alto, CA) has raised $20 million through a private placement of 2 million shares of the company's unregistered common stock. The shares were sold to existing and new investors.

With the proceeds from the offering, Connetics now has approximately $70 million in cash, cash equivalents, and restricted securities. The securities sold in the private placement have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration.

In a company press release, chief financial officer John L. Higgins said that the financing "provides substantial additional resources to expand our relaxin clinical activities and commercial development. With growing product revenues, major relaxin clinical events, and a strong balance sheet, we believe the company is poised for continued success."

Connetics Corp. is a biopharmaceutical company focused on the development of recombinant human relaxin for multiple indications and on the development and commercialization of novel therapeutics for dermatology and other specialty medical markets.

For more information: Connetics Corp., 3400 W. Bayshore Rd., Palo Alto, CA 94303. Tel: 650-843-2800. Fax: 650-843-2899.

Edited by Jim Pomager