Monday, November 4, 1996
By Eric Pierce
Despite its common shares losing 42 percent of their value on Thursday due to a clinical hiccup, Carrington Laboratories (CARN) said it won't have to return to investors the $6.6 million it raised in a convertible preferred share placement three days earlier. "They knew what they were getting into," said CARN CFO Sheri Pantermuehl. "They're obviously not pleased, but they're grown-up about it. They're not in it for the short-term, they are in it for the long-term," she added. On Thursday, CARN announced that the first Phase III trial of its Aliminase ulcerative colitis drug showed no benefit over placebo. An ongoing Phase III study has been halted while the company investigates reformulating the compound. (details B7). CARN closed Friday at $10.125, off $11 (52 percent) on the week.