Sources inform ''Globes'' that cancer drug development company Biocancell Therapeutics Ltd. (TASE:BICL) is considering an offering in the US.
Biocancell CEO Uri Danon is currently in the US, and has met representatives from a number of investment houses to choose an underwriter for the offering, if and when it is made. The sources added that the company plans to raise up $10 million.
Biocancell has made no comment.
Biocancell was founded in 2004 by CSO Prof. Avraham Hochberg on the basis of his discovery of the H-19 gene that is found in many types of cancers, but is nearly undetectable in normal tissue. The company's drug, BC-819 is undergoing clinical trials at various stages for targeted treatment of bladder, pancreas, and ovarian cancer, based on this discovery.
Biocancell's share price rose 12.7% today to NIS 2.41, giving a market cap of NIS 48 million. However, the company has only NIS 8 million in cash, and its auditor attached a going concern warning to the company's financial report, so that the company has a real need to raise capital.
Biocancell has an indirect link to Wall Street. One of its shareholders, Tikcro Technologies Ltd. (Bulletin Board: TIKRF), a spin-off of Orckit Communications Ltd. (Nasdaq: ORCT; TASE: ORCT), was turned into a stock market shell that invested in Biocancell in 2008, and currently owns 3.9% of the company.
Published by Globes [online], Israel business news - www.globes-online.com - on July 15, 2010
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