IMMULOGIC'S IPO FALLS SHORT OF GOALImmuLogic Pharmaceutical Corp. on Wednesday completed itsinitial public offering of 2 million shares of common stock at$10 per share, raising $20 million.
The Cambridge, Mass., company had hoped to sell 3 millionshares at $14 to $16 per share, which would have raisedbetween $42 million and $48 million.
The company, which is developing products to treat allergiesand autoimmune diseases, is not expected to have a product inthe clinic until 1992. Analysts say Wall Street is taking amore cautious attitude to offerings from companies that donot yet have products in or close to market.
With 8.4 million shares outstanding, ImmuLogic has a marketvaluation of $84 million, far short of the $131 million to $150million that would have resulted at the higher offering prices.
ImmuLogic stock (NASDAQ:IMUL) closed at $10 on Wednesday.
BIOCINE GETS $1MILLION FROM AIDS TESTING FUND
The Biocine Co., a joint venture between Chiron Corp. and Ciba-Geigy Ltd., has received a $1 million grant from the CaliforniaAIDS Clinical Trials Testing Fund to conduct Phase I clinicaltrials of its therapeutic AIDS vaccine.
Biocine is finishing Phase I trials of the vaccine, based on thegp120 envelope protein of the AIDS virus, in healthyvolunteers. The Emeryville, Calif., company is initiating PhaseI trials in asymptomatic HIV-positive patients.
Biocine is the first company to receive support from the $2million fund, which was established in 1986, because noCalifornia company had an AIDS vaccine ready for trials.Another unnamed company, whose grant application wasrejected, is appealing that decision.
Chiron stock (NASDAQ:CHIR) closed Wednesday at $51.75, up 50cents.
MGI FILES FOR 2 MILLION-SHARE OFFERING
MGI Pharma Inc. of Minneapolis said Wednesday it has filed fora public offering of 2 million shares of common stock.
The company, which acquires and develops therapeutics forcancer and other diseases, said it will use the proceeds toexpand product acquisition, development, sales and marketing.
Underwriters Dain Bosworth Inc. and William Blair & Co. havean option to purchase an additional 300,000 shares to coveroverallotments.
MGI common stock (NASDAQ:MOGN) closed at $9 on Wednesday,up 25 cents.
(c) 1997 American Health Consultants. All rights reserved.