* NeuroSearch says aims to raise 443 million Danish crowns
* Offers shareholders up to 7.39 million shares at 60 crowns
* CEO says issue is not a rescue measure
* Shares plunge 14.5 percent
(Adds details, quotes; updates share price)
By John Acher and Karin Jensen
COPENHAGEN, Oct 19 (Reuters) - Danish biopharma company NeuroSearch A/S is seeking up to 443 million Danish crowns ($89 million) through a share issue to boost its transformation into a pharmaceuticals group, the company said on Monday.
The announcement knocked 14.5 percent off the value of NeuroSearch stock, which traded down 21.50 crowns at 127.0 at 1022 GMT against a 0.6 percent gain in the DJ Stoxx European healthcare sector index.
NeuroSearch said it would offer existing shareholders up to 7.39 million new shares at 60 crowns per share, which it said would raise approximately 443 million crowns if the offering was fully subscribed.
Shareholders will be allocated three pre-emptive rights for each share held and seven rights will entitle owners to subscribe for one new share, NeuroSearch said.
The aim of the issue is to secure funding for research and development activities, general corporate purposes and to strengthen the company's negotiating position in relation to licence partners, NeuroSearch said.
Chief Executive Flemming Pedersen told Reuters the transaction was a positive move not a rescue measure and added that the issue would provide cash to run the business up to the middle of 2012 -- a year longer than without it.
He said in the statement that NeuroSearch aimed to transform itself from a research and development firm into a fully integrated pharmaceuticals company specialised on central nervous system disorders.
PROMISING DRUG CANDIDATES
"In the coming year we expect to be able to initiate market registration of our first product -- Huntexil for the treatment of Huntington's disease -- while also advancing a broad pipeline of other promising drug candidates," he said.
"We are determined to make this succeed and wish to strengthen our capital resources to maximise NeuroSearch's strategic position for continued development," Pedersen added.
Sydbank analyst Rune Majlund Dahl said in a note to clients the share issue came earlier than he had expected and he had cut his rating on the stock to "underweight" from "overweight". He said the issue led him to believe that NeuroSearch intended to proceed without a partner to Phase 3 studies of its obsesity drug tesofensine.
But CEO Pedersen told Reuters NeuroSearch had no intention to go it alone on tesofensine development, though it could start Phase 3 studies on its own.
"Alongside this we are engaged in partner talks and that message is entirely unchanged," he said. "We will not finance the whole Phase 3 programme, which the amount (from the issue) would have been too small for any how."
Phase 3 studies are a costly stage in drug development involving tests on human subjects.
Jyske Markets senior analyst Frank Horning Andersen repeated a "buy" recommendation on the stock and said in a note to clients the new capital would give NeuroSearch time to work in peace to develop Huntexil and to find partners for tesofensine.
The subscription period will start on Oct. 27 and end on Nov. 9, NeuroSearch said. Pre-emptive rights will be traded from Oct. 22.
The joint global coordinators are Danske Markets and Handelsbanken Capital Markets, NeuroSearch said. (Editing by Hans Peters and David Holmes) ($1 = 5.002 Danish crowns)