* Baxter pays $1 mln for 7.3 mln shares
* Lipoxen raises 2.9 mln stg via discounted share issue
* Says funds to be used for R&D, working capital
* Lipoxen shares rise as much as 11 pct (Adds details)
May 29 (Reuters) - British drug developer Lipoxen Plc LIPX.L said it raised 2.9 million pounds ($4.6 million) in a discounted share issue, in which Baxter International Inc (BAX.N) bought a 4.8 percent stake in the company.
The company, which develops biologic drugs and vaccines, said U.S. healthcare firm Baxter bought about 7.3 million shares for $1 million.
Institutional investors, some directors and senior management also acquired shares under the programme offering 34.2 million new shares, or about 22.2 percent of its enlarged share capital, Lipoxen said in a statement.
The shares were sold at 8.5 pence per share, a 39 percent discount to the stock’s mid-market closing price on Wednesday on the London Stock Exchange, the company said. Lipoxen plans to use the proceeds from the share sale for pre-clinical research and development, feasibility studies and working capital purposes among other things, it said.
Lipoxen shares were up 3.6 percent at 14.25 pence at 0850 GMT. They earlier touched a trading high of 15.25 pence. ($1=.6263 Pound) (Reporting by Kumar Alagappan in Bangalore; Editing by Gopakumar Warrier)