Drug development company BiolineRX Ltd. (TASE:BLRX) has filed a prospectus with the US Securities and Exchange Commission (SEC) for a Nasdaq offering. According to the prospectus, the Jerusalem-based company plans raising $40.25 million "as soon as practicable."

The prospectus reveals that BiolineRX's ticker will be BLRX on Nasdaq, the same as its ticker on the Tel Aviv Stock Exchange (TASE). The lead underwriters for the IPO will be Oppenheimer & Co. and JMP Securities.

BiolineRX stated in the prospectus that $21 million of the funds that it plans raising will be used to finance clinical trials for four of the drugs that it is developing. $5 million will be used for feasibility research for 12 more drugs and $5 million will be allocated management, marketing and sales expenses.

BiolineRX recently signed an out-licensing deal to further its schizophrenia drug with Cypress Bioscience Inc., which earns the Israeli company an initial payment of $30 million.

As of today, Bioline has 11 drugs in its pipeline and has signed two commercialization agreements - for the schizophrenia treatment and a hear treatment. At the same time, nine more treatments are being examined as part of the EDP program for developing early stage materials.

Bioline's share opened 4% higher this morning at NIS 3.60 on the TASE, giving a market cap of NIS 452 million.

Published by Globes, Israel business news - www.globes-online.com - on September 26, 2010

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