Monday, October 16, 2000
The market's weakness is taking its toll on some offerings.
DrugAbuse Sciences withdrew its beleaguered 4 million share IPO and most
of the new paper is getting out at lower valuations than targeted.
DrugAbuse may be suffering from withdrawal after its bouts with the market. The company, which develops drugs to treat alcohol and drug abuse, had postponed its original IPO in April, but refiled in August to sell 5 million shares at $12-$14. The company dropped the price range to $9-$11 last week, then on Wednesday cut the price again to $8-$9. DrugAbuse had $17.1 million in cash at June 30, which it said is enough to get it through mid-2001. It lost $9 million on revenues of $981,828 in the first six months.
Cancer gene therapy company Introgen (INGN) was luckier, raising
$32 million in its IPO through the sale of 4 million shares at $8. But the take
was a third of the $92 million the company had targeted when it filed on Feb.
17. INGN refiled on Aug. 2 to sell 5 million shares at $12-$14, then last week
dropped the shares to 4 million and reduced the range to $8-$10. INGN closed
Friday at $10.438, valuing the company at $214 million.
On the positive side, migraine treatment developer Pozen (POZN)
priced 5 million shares at $15, the middle of its range, raising $75 million
in its IPO. The stock closed Friday at $15, giving POZN a market cap of $396
million. POZN filed on April 28 to raise up to $85 million.
Some signs of market sentiment
will be seen this week when Genmab begins trading on the Copenhagen Stock Exchange
and Frankfurt's Neuer Markt. The Danish company last week raised E209.2
million ($181.7 million) in an IPO of 6 million shares at E34.89.
It had hoped to sell the shares at E34-E40.
Medarex (MEDX), which formed Genmab to develop human monoclonal antibody-based
products to treat chronic diseases and cancer, slid $6.313 to $94.563 on the
week even though its balance sheet will now reflect the E247.7
million ($215.1 million) value of its 33 percent stake (7.1 million shares)