Monday, September 25, 2000
So far this year, companies with shares coming off of IPO lock-ups
have had about a 50-50 chance of having their stock prices fall as a result.
The odds held up last week as InterMune (ITMN) added $0.125 to $41.375 on 277,500
shares on Tuesday when the lock-up expired on 8.4 million shares. The pulmonary,
infectious and congenital diseases company soared over the remainder of the
week to close Friday at $55.375, up $13.625 (33 percent).
On the other side of the ledger, microfluidics play Aclara
(ACLA) lost $6.50 (18 percent) to $30.50 on 1.5 million shares on Monday after
9 million shares came off lock-up over the prior weekend. It didn't help that
the NASDAQ Composite slid 3 percent on Monday. ACLA, which has divided its lock-up
into three dates, closed Friday at $27.875, down $9.125 (25 percent). The
final 9 million shares will be released on Nov. 1.
Both IPOs floated in March. ACLA raised $217.4 million through the sale of 10.4 million shares at $21. ITMN raised $125 million by selling 6.25 million shares at $20.
Another 16 IPOs will come off lock-up this year (see "Upcoming
Lock-ups"). While most of the stocks are off sharply from their highs,
there are still profits to be had. All but one - cancer play Allos (ALTH) -
are trading above their IPO price. And most of the shares that are covered under
lock-ups were purchased in private rounds at significantly less than the IPO
Three companies with shares coming off lock-up this past weekend
and this week showed mixed performance last week. Infectious disease play IntraBiotics
(IBPI) was up $0.50 to $16.625, while ALTH dipped $0.438 to $11.063 and biological
test supplier Luminex (LMNX) dropped $2.625 to $28.
Genmab: Prettying up the bride
Genmab and parent Medarex (MEDX) have quietly taken a number
of recent steps that appear to be designed to divide up worldwide responsibilities
in their antibody space and groom the Copenhagen company for an IPO in October.