Company News

Pluristem to raise up to $50 mln on Nasdaq -report

TEL AVIV, Jan 27 (Reuters) - Israeli stem cell therapy company Pluristem Therapeutics PSTI.O will raise $40-$50 million in a secondary offering on Nasdaq, the Globes financial newspaper reported on its website on Thursday.

Pluristem was not available to comment.

The company had said on Wednesday it intended to offer common stock and warrants in a public offering, though it did not disclose the amount.

The Tel Aviv Stock Exchange suspended trading in Pluristem PSTI.TA shares on Thursday until the pricing for the U.S. offering was completed.

Pluristem said it would use the proceeds to conduct clinical trials, research and product development activities and for general corporate purposes.

Last week, the company said it had won U.S. and European approval to conduct an advanced trial for its treatment of peripheral artery disease (PAD), a degenerative disorder.

The biotech company has completed early Phase I trials and said it will be able to conduct an advanced Phase II/III trial in Europe and the United States to treat the end stage of PAD, known as critical limb ischemia.

PAD is an obstruction of blood vessels, usually in the leg, causing pain, difficulty in walking and leading eventually to amputation.

Pluristem will also conduct a Phase II trial to test its treatment on an earlier stage of the disease.

In December, it filed with the U.S. Securities and Exchange Commission for a shelf offering of up to $75 million.

Pluristem shares reached a year high of $4.38 on Nasdaq on Wednesday, before closing up 6.1 percent at $4.20. The stock fell 8.6 percent in after-hours trade.

Oppenheimer & Co is acting as bookrunner and Needham & Co is co-lead manager for the offering. (Reporting by Tova Cohen; Editing by Dan Lalor)