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Cempra expects to raise $47.7 million with stock sale

Cempra Pharmaceuticals shares were down more than 10 percent early Friday after the Chapel Hill drug developer priced the 7.25 million shares it plans to sell in a public offering of stock.

The shares have been priced at $7, and Cempra expects the offering to raise $50.8 million. The company's proceeds are expected to total $47.7 million.

Cempra raised $48 million through the public sale of stock in February 2012, or about half the amount it expected to generate.

The disappointing IPO has forced the company to seek out other ways to finance the development of solithromycin, its experimental antibiotic treatment.

Chapel Hill's Cempra Pharmaceuticals announces Japanese partner to develop experimental antibiotic

Chapel Hill drug developer Cempra Pharmaceuticals announced a licensing agreement Tuesday worth up to $70 million and structured to help the underfunded company finance development of its most promising antibiotic treatment.

Under the deal, Toyama Chemical Co. will have exclusive rights in Japan to develop and commercialize solithromycin, Cempra's lead experimental drug. In exchange, Cempra will receive an upfront payment of $10 million and up to $60 million in milestone payments.

Cempra said Japan is the world's second-largest antibiotic market and Toyama "will commit significant resources" to developing solithromycin, a treatment for pneumonia and respiratory tract infections.

1368638909 Chapel Hill's Cempra Pharmaceuticals announces Japanese partner to develop experimental antibiotic The News and Observer Copyright 2011 The News and Observer . All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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