Critical Therapeutics raises $20M, restructures

CRTX raised $20 million through a registered direct offering of 7.5 million units at $2.68. Each unit consists of a share and a five-year warrant to purchase 0.5 shares at $2.62. Lazard was placement agent.

CRTX also said that it reduced its headcount by 63 (52%) to 59 employees. The cuts came primarily in the R&D department and the sales force for asthma drug Zyflo. The immediate-release formulation of zileuton had only $4.7 million in sales for the nine months ended Sept. 30, and CRTX said physician feedback indicates that the four times daily dosing regimen will make market penetration difficult. The company said it will focus on commercialization of zileuton CR to prevent and treat asthma in adults and children 12 years or older. The twice-daily, controlled-release formulation of the 5-lipoxygenase inhibitor has a May 31, 2007, PDUFA date. CRTX hopes to launch zileuton CR in the second half of next year. ...