By Mary Welch

Genomica Corp., intent on raising about $88 million to continue development of its Discovery Manager product for genetic research, filed for an initial public offering (IPO).

The Boulder, Colo.-based company intends to offer 6 million shares, with another 900,000 being optioned to the underwriters to cover overallotments. CIBC World Markets Corp., of New York, is the lead manager. Dain Rauscher Wessels, of Minneapolis, and Prudential Vector Healthcare Group, of New York, are co-managers.

The company is basing its proposal on an assumed stock price of $16. If the overallotment option is fully exercised, the company would net about $101.6 million, it stated in the prospectus.

In addition to continuing the development of Discovery Manager, the proceeds will be used to expand its sales and marketing activity, acquire complementary technology and repay capital lease obligations.

After the offering there will be more than 21 million shares outstanding. The company estimates that, with this funding as well as other financial sources, it will have enough operating cash for the next 24 months. Without the public offering, Genomica has enough operating resources until Dec. 31, the prospectus said.

Genomica¿s filing comes just days after it raised $15 million in a private placement of Series C preferred stock. Prior to the latest fund-raising efforts, Genomica had raised more than $21.1 million in equity financing since opening its doors in 1996. (See BioWorld Today, March 15, 2000, p. 1.)

Developed over the past 15 years, Discovery Manager is designed to merge information technology and genomics by offering researchers software tools to solve data management and analysis challenges, the company said. The database can be filled with genomic data from the user¿s own research as well as data from publicly available and other sources. The technology enables researchers to access, store, manipulate, analyze, annotate and integrate genomic data from a variety of sources

Among the company¿s customers are Clingenix Inc., of San Carlos, Calif.; Oxagen Ltd., of Abingdon, UK; Biognosis Inc., of Bethesda, Md.; Glaxo Wellcome plc, of London; and the National Cancer Institute. Genomica also is collaborating with PE Biosystems Group, of Foster City, Calif., to develop software products for drug discovery purposes.

For the 1999 year, Genomica reported revenues of $781,000, and a net loss of $7.5 million. As of Dec. 31, the company had $6.3 million in cash.

Among the company¿s largest shareholders are the New York-based Kaufmann Fund, with about 4 million shares; Falcon Technology Partners LP, of Devon, Pa., with 3 million shares; Invesco Global Health Sciences Fund, of Denver, with 2.6 million shares; and Arch Venture Fund III LP, of Chicago, with 1.7 million shares.

Genomica¿s proposed Nasdaq ticker symbol is GNOM.