Isis filed for a 5 million share follow-on, but market watchers don't believe it marks the start of an underwritten funding window. Rather, the company is selling into strength of its stock price in the wake of its antisense deal with Eli Lilly (LLY) for metabolic and inflammatory diseases, in which LLY promised to pay ISIP north of $300 million (see BioCentury, Aug. 27). The stock is up $9.22 since the announcement, so even if it gets the typical 15% road show haircut, the shares still should be well above its pre-deal price of $10.08.

ISIP helped its own cause last Wednesday, when it moved up $0.94 to $18.92 on 876,600 shares on news that its
ISIS 2302 inhibitor of ICAM-1 improved symptoms of active distal ulcerative colitis (UC) in a European Phase II trial (see B13).

The company would raise $96.5 million if the deal goes off at Friday's close of $19.30. UBS Warburg is the lead manager. Robertson Stephens; Needham; and Fortis Securities are co-managers.