RXi Pharmaceutical of Worcester to become a publicly traded company.Byline: Bob Kievra WORCESTER - RXi Pharmaceuticals Corp. yesterday filed a 10.8 million share initial offering as its Los Angeles-based owner reduces its ownership stake through a registration process that converts the biopharmaceutical startup into a publicly traded company publicly traded company A company whose shares of common stock are held by the public and are available for purchase by investors. The shares of publicly traded firms are bought and sold on the organized exchanges or in the over-the-counter market. . RXi won't receive any proceeds from the $11 million offering, which will distribute 4.6 million shares in the company to existing stockholders, directors, officers and employees of CytRx Corp., which owns 86 percent of RXi's stock. In a registration statement filed with the Securities and Exchange Commission, CytRx, which founded RXi in 2006, said the offering will also cover the resale of RXi shares held by CytRx after shares are distributed to stockholders and others. CytRx said it will own approximately 6.2 million RXi shares after the distribution, or 49 percent of RXi's outstanding shares. RXi has applied to list its shares on the Nasdaq Capital Market Originally called the NASDAQ Small Cap Market, NASDAQ announced a name change to the NASDAQ Capital Market on September 27, 2005. [1] The NASDAQ Capital Market exists for securities of smaller, less-capitalized companies (small caps) that do not qualify for under the symbol RXIP. The company, headed by Chief Executive Officer Tod Woolf, began operating as a majority-owned subsidiary majority-owned subsidiary A firm in which more than 50% of outstanding voting stock is owned by the parent company. of CytRx in January. It is developing therapies based on RNAi, or gene-silencing technology. Its initial focus is on the treatment of neurological diseases such as Lou Gehrig's disease Lou Geh·rig's disease n. See amyotrophic lateral sclerosis. , metabolic diseases and cancer. RXi's portfolio of licenses from the University of Massachusetts Medical School UMMS is ranked fourth in primary care education among the nation’s 125 medical schools in the 2006 U.S.News & World Report annual guide, “America’s Best Graduate Schools”. UMMS is also a major center for research. consists of certain inventions and technologies developed primarily by UMass researchers Craig C. Mello, Tariq Rana and Michael P. Czech. Dr. Mello shared the 2006 Nobel Prize in physiology or medicine Below is a list of the winners of the Nobel Prize in Physiology or Medicine (Swedish: Nobelpriset i fysiologi eller medicin) from 1901 to the present.[1] for his work on RNAi. In its registration statement, the company said it believe it has sufficient working capital to fund expenditures through the first quarter of 2009, but will need to raise substantial amounts of money. RXi said it intends to finance the initial development of a limited number of drug candidates with its own capital, money obtained from the capital markets and from partners. Mr. Woolf did not return phone calls yesterday seeking comment. A spokesman for CytRx said SEC rules governing the registration of public companies prohibited any comment. RXi generated no revenues in 2006 and said it doesn't expect any in 2007. For the six months ended June 30, RXi posted a $6.2 million loss. RXi, which has 14 employees, is located at the city's biotechnology park off Plantation Street. RXi will move in December into the Worcester Polytechnic Institute Worcester Polytechnic Institute - (WPI) A well-regarded, small engineering college. Address: Worcester, MA, USA. Life Sciences and Bioengineering bioengineering Application of engineering principles and equipment to biology and medicine. It includes the development and fabrication of life-support systems for underwater and space exploration, devices for medical treatment (see Center. The company has signed a 20-month lease for 5,300 square feet at a monthly rental rate of $15,035, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. SEC filings. CytRx said it decided to distribute the shares because of a difference in focus with respect to therapeutic programs. CytRx said its own lead programs concentrate on small molecule drugs that require skills, patents and management expertise different from RNAi drug development efforts. The offering will also create stock option opportunities which can be incentives for management and be used to recruit RXi employees. RXi said the RNAi field, while at an early stage of development, is intensely competitive. The company said competitors include large and small pharmaceutical, chemical and biotechnology companies, as well as universities, government agencies and private and public research organizations. ART: PHOTO CUTLINE: RXi Chief Executive Officer Tod Woolf at one of the company's labs in Worcester. PHOTOG pho·tog n. Informal A person who takes photographs, especially as a profession; a photographer. : BLOOMBERG NEWS |
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