Synageva BioPharma Announces $80 Million Stock Offering

Xconomy Boston — 

Synageva BioPharma  (NASDAQ: GEVA) announced today that it is commencing an $80 million secondary offering, less than six months after raising $115 million in a July secondary offering.

The Lexington, MA-based company is developing drugs for very rare diseases, and currently has one candidate, SBC-102, in a Phase I/II clinical trial. The drug targets lysosomal acid lipase deficiency, a genetic disease that leads to the buildup of fatty materials in the liver, spleen, and blood vessel walls, and usually leads to an early death. The late-onset version of the disease treated by SBC-102 is diagnosed in about 25 people out of every one million births.

SBC-102 received fast-track designation for SBC-102 from the FDA in June 2011, but the drug will likely be in clinical trials for another two to three years. Also in June 2011 Synageva went public through a reverse merger with already public Trimeris in an all-stock deal. The Trimeris merger garnered Synageva some revenues from royalties earned by Fuzeon, an older AIDS drug developed by Trimeris and distributed by Roche.

Synageva’s shares closed yesterday at $47.87 and it has a current market cap of $1.16 billion.