Texas Biotech, LG Group deal

TXB and LG Group's LG Chem subsidiary will develop TBC 1269, a selectin antagonist to treat inflammatory diseases, and TBC 11251, an endothelin A receptor antagonist to treat congestive heart failure. TXB expects to begin clinical testing of both compounds before year end.

LG Chem will invest $5 million through the purchase of 1.25 million shares of TXB at $4. TXB, which closed at $3.937 on Friday, has 24.2 million shares outstanding prior to the investment. TXB will receive research payments of $10.7 million. LG Chem also will fund Asian clinical development, which TXB estimated at $5 million. ...