Two birds, one stone kind of deal
Two birds, one stone kind of deal Neurex Corp. 's second partnering deal should add some appeal to its long-postponed initial public offering, once the financing window reopens. Under the terms of the partnership announced last week, Warner-Lambert Co. will buy $7 million worth of the 3-million-share IPO, plus an additional $3 million worth of shares in Neurex's next public offering.
The IPO, which was postponed in February, already had sweeteners in it much like those in the Cortech and Ligand deals. Potential buyers of the shares, which originally were targeted at $10-$12, were guaranteed an implied internal rate of return of 20-25 percent over a two-year period. If the stock price didn't reach those levels, additional shares were to be issued. The price range subsequently has been lowered to $7-$8...