Monday, March 23, 1998
Ebb & Flow/P>
There may be hope for the sector yet. A U.S. and a U.K. IPO
were met with healthy investor appetite, and GelTex (GELX) successfully
priced an $81 million follow-on.
On the U.S. side, CuraGen (CRGN) raised $34.5 million
in its IPO of 3 million shares at $11.50. The stock was well received in the
aftermarket and closed Friday at $12.375, valuing the company at $158.7 million.
The company uses its gene discovery, drug target validation and high-throughput
screening to discover drugs to treat cardiovascular disease, stroke, cancer
and metabolic disorders, in addition to agricultural products. CRGN raised an
additional $11 million through the sale of 956,522 shares at the IPO price to
Biogen (BGEN), Genentech (GNE) and the University of Florida Research
Foundation. CRGN filed on Oct. 16 to raise up to $40 million, then refiled on
Feb. 23 to sell 2.75 million shares at $10-$12.