RICHMOND, Calif.--Onyx Pharmaceuticals, a genetically oriented drug development company, has sold over 1.4 million shares to two institutional investors at $7.13 per share, raising $10 million. The company said it will use the money to fund ongoing research and development efforts oriented toward cancer treatments.
The lead investor is London-based International Biotechnology Trust, which is managed by Rothschild Bioscience. Another manager is Lombard Odier. As part of the deal Nicole Vitullo, senior vice-president of the Rothschild unit, will become a director of Onyx.
In other news, Onyx announced that the pharmaceutical company Warner Lambert has extended a three-year research agreement by another three years. The original partnership was scheduled to expire in May.
The extension means Onyx will receive $25 million in committed funding from Parke-Davis, Warner Lambert's research division, plus milestones prior to commercialization of any products. Onyx said it has already received $10.3 million in payments from the original agreement, and will receive another $6.2 million by May. In all, the six-year deal could bring in up to $50 million plus milestones, according to Onyx.