Back

Use of Proceeds We estimate that the net proceeds we will receive from the sale of 3,750,000 shares of our common stock in this offering will be approximately $47.3 million, or approximately $54.6 million if the underwriters fully exercise their over-allotment option, in each case at the initial public offering price of $14.00 per share after deducting underwriting discounts and commissions and estimated offering expenses payable by us. We anticipate using the net proceeds from this offering for research and development activities, including clinical trials for our lead product candidate, working capital and other general corporate purposes. Pending such uses, we plan to invest the net proceeds of the offering in short-term, interest bearing investment grade securities. After completion of the offering made by this prospectus, we anticipate that our annual research and development expense will increase to approximately $25 million to $30 million, with the majority of these costs incurred in connection with our Phase III clinical program for AI-700. The amount and timing of our actual expenditures will depend on numerous factors, including the progress of our research and development activities and clinical trials, the number and breadth of our product development programs, our ability to establish and maintain corporate collaborations and other arrangements and the amount of cash, if any, generated by our operations. In addition, a portion of the net proceeds may be used for the acquisition of businesses, products and technologies that are complementary to our own, although we currently do not have any understandings, commitments or agreements with respect to acquisitions. We will retain broad discretion in the allocation and use of the net proceeds of this offering.