Antiviral drug developer Achillion Pharmaceuticals Inc. said today that it plans to raise $50 million by selling stock to four venture capital firms.
The proceeds will be used to test the New Haven, Conn., company’s hepatitis C drug candidate and other drugs.
Achillion (Nasdaq: ACHN) said the venture capital firms are Domain Associates LLC of New Jersey and California, Clarus Ventures LLC of Boston, Quaker BioVentures of Philadelphia and Pappas Ventures of North Carolina. That group will buy 19.8 million shares at $2.49 per share, for gross proceeds of $50.1 million, Achillion officials said. The company’s stock was trading at $2.63 per share early Thursday afternoon.
The investment firms will also receive warrants that they can convert into another 6.9 million Achillion shares. Each warrant costs 12.5 cents and will allow the investors to buy 0.35 shares of stock at any time over the next seven years.