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Clinical Data Raises $32M from Stock Offering

By a GenomeWeb staff reporter

NEW YORK (GenomeWeb News) – Clinical Data today announced it has closed on its previously announced offering, raising $32 million.

Net proceeds from the sale, after underwriting discounts and commissions and estimated offering expenses, are expected to be about $30 million.

BMO Capital Markets was the sole book running manager. Wedbush PacGrow Life Sciences and Roth Capital Partners acted as co-managers in the offering.

The Newton, Mass.-based firm will use the proceeds to develop and commercialize its lead therapeutic, vilazodone, for treatment of depression. Proceeds will also be used to fund clinical trials for its coronary vasodilator, Stedivaze, currently in Phase III development; for the continued development of other products and drug candidates; and for working capital and general corporate purposes.

Clinical Data announced last week its plans to offer the stock. At the time, it said it expected to raise $27.8 million through the sale of 1,945,576 shares at $14.30 per share. Today, the company said that it also sold 291,836 shares pursuant to the full exercise of an over-allotment granted to the underwriters, for a total of 2,237,412 shares sold at $14.30 per share.

The shares offered by the company exhausted all remaining shares on its existing shelf registration statement, it said.

Clinical Data raised net proceeds of about $44.1 million in a public offering of 2.75 million shares of common stock last October.

Shares of the company's stock were down 3.7 percent at $15.22 in mid-afternoon trade Monday.

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