Discovery Laboratories Inc., Warrington, said it has arranged for $35 million in financing from Kingsbridge Capital Ltd., a private investment group.

Discovery can tap the funding as needed over the next three years, it said. In return, Kingsbridge will receive up to 31.6 million newly issued shares of Discovery common stock, depending on how much of the funding the company uses.

The biotechnology company, which is developing treatments for respiratory diseases, had 158 million shares outstanding as of May 1.    - Paul Schweizer