10/13/09 8:10 AM PDT
MENLO PARK, CALIF. — Corcept Therapeutics Inc. said Tuesday it expects to raise about $18 million by selling stock and options to institutional investors.
Corcept said the money will be used to complete enrollment of patients in a late stage clinical trial of its drug candidate Corlux as a treatment for Cushing's syndrome, and to cover the cost of filing for Food and Drug Administration marketing clearance.
The $18 million is a gross estimate and does not include expenses connected to the offering.
Corcept said it will sell 12.6 million units at $1.43 per share. The units will consist of one share of stock, and a warrant to buy 0.35 shares at an exercise price of $1.66 per share. Buyers include current Corcept investors such as Longitude Capital Management, Sutter Hill Ventures, Alta Partners and new investors including Federated Kaufmann Funds.
The sale is expected to close on Friday.
The company is testing Corlux as a treatment for Cushing's syndrome and psychotic depression. Cushing's syndrome occurs when the body produces to much of the hormone cortisol, or by overexposure to cortisol. Symptoms can include high blood sugar and blood pressure, fatigue, and weak muscles.