Warburg Pincus Hikes Stake in Allos Therapeutics (ALTH)
Allos Therapeutics, Inc. (NASDAQ: ALTH) had already announced that its 10.8 million shares had priced at $5.64. That was old news.
But what isn’t old news is that in a Form 4 filing after today’s close, WARBURG PINCUS PRIVATE EQUITY VIII L.P. disclosed that took down 3,500,000 additional shares at $5.64 on May 29. This now gives the private equity fund a stake of some 26,124,430 shares. Our last data showed 78.88 million shares outstanding, but that may not reflect the new share issuance.
This last equity sale is a good indication that the market is willing to finance this molecular therapeutic company for cancer treatment further, particularly for a pre-clinical and pre-revenue biotech operation.
Allos said in its original filing that it plans to use the financing primarily for clinical and pre-clinical research and development of its candidates, manufacture of clinical trial material and pre-commercial scale-up activities for PDX, working capital and general corporate purposes.
Allos closed flat today, but shares are at $6.34. Its 52-week trading range is $3.91 to $7.70.
Jon C. Ogg
May 30, 2008