By Matthew Willett
The Medicines Company completed its initial public offering Tuesday, selling 6 million shares at $16 each to raise a total of $96 million, about 28 percent more than the company anticipated in its prospectus.
The Medicines Co. anticipated raising about $75 million from the offering. Its stock (NASDAQ:MDCO) closed Tuesday at $21.687, rising $5.687, or 35.55 percent.
Underwriters have options on an additional 900,000 shares of the common stock to cover overallotments. J.P. Morgan & Co. was sole bookrunner of the offering, with Robertson Stephens acting as co-lead manager and CIBC World Markets acting as co-manager.
The Cambridge, Mass., company focuses on the acquisition, development and commercialization of late-stage pharmaceuticals. It's lead product, Angiomax, has been deemed "approvable" by the FDA.
The company plans to use IPO proceeds for the launch of Angiomax, trials for new indications and other product development and potential product acquisitions.
The anticoagulant based on naturally occurring hirudin directly attacks the clotting factor thrombin. In May, the FDA said final approval of the product - for unstable angina patients undergoing percutaneous transluminal coronary angioplasty - is dependent on the company satisfying certain undisclosed conditions, which company officials said were attainable. (See BioWorld Today, May 18, 2000, p. 1.)
Angiomax also is in a Phase III trial with angioplasty patients who have experienced HIT/HITTS (heparin-induced thrombocytopenia/heparin-induced thrombocytopenia and thrombosis syndrome) and a Phase III trial for myocardial infarction.
A separate Phase III trial to evaluate Angiomax in unstable angina patients is planned for next year.
The Medicines Co. acquired the drug after it was abandoned by Biogen Inc., of Cambridge, Mass. In Phase III trials under the name Hirulog, the drug failed to provide positive results in myocardial infarction following angioplasty in comparison to heparin.
The Medicines Co. said it will use the recent funding for additional Angiomax testing as well as for working capital and general corporate purposes.
As of March 31, the company had about 29.3 million shares outstanding and about $12.3 million in cash. Before the offering Warburg, Pincus Venture LP, of New York, owned 39.2 percent of the company and Biotech Growth S.A., of The Republic of Panama, owned 24.6 percent.