Somatogen, Eli Lilly deal

SMTG received a $2 million milestone payment from Lilly after completing enrollment in two Phase II trials of Optro (rHb1.1), SMTG's recombinant human hemoglobin product.

The companies also amended their agreement in order to accelerate Lilly's equity investment in the Boulder, Colo., company. As amended, Lilly will accelerate $7 million of the $10 million equity investment that it would have made in March 1996 if it determined at that time to proceed with development of Optro. Lilly will purchase the shares within five days following the completion of SMTG's follow-on offering (see page B11), at a 15 percent premium to the offering price. ...