By Mary Welch

Lexicon Genetics Inc., a genomics company that uses a gene trapping technology to discover novel genes, joined the initial public offering (IPO) bandwagon as it filed to raise $100 million.

The Woodlands, Texas, company did not disclose in its filing the number of shares to be offered or their proposed price.

Lexicon intends to use the net proceeds to increase its functional genomics research efforts, as well as to expand its Human Gene Trap and OmniBank databases and library. In addition, the company wants to generate full-length gene sequences for potential drug targets and therapeutic proteins.

The Human Gene Trap database contains DNA sequences from about 50,000 human genes that have been rapidly and efficiently trapped from human chromosomes and analyzed in a relational database. The gene trapping technology enables Lexicon to obtain DNA sequences of rarely expressed genes, identify genes contained within the DNA sequence of the chromosome and obtain DNA sequences of genes throughout the human genome at a fraction of the cost of traditional approaches, the company said.

The OmniBank database and mouse clone library contain more than 60,000 embryonic stem cell clones that are stored in liquid nitrogen freezers and identified by DNA sequence in a relational database. Each OmniBank ES cell clone can be grown into a knockout mouse.

Since September, it has established collaborations with G.D. Searle & Co., of Skokie, Ill.; N.V. Organon, of Oss, the Netherlands; and Millennium Pharmaceuticals Inc., of Cambridge, Mass., among others.

Founded in 1995, Lexicon posted 1999 revenues of $4.7 million and a net operating loss of $12.47 million. As of Dec. 31, it had $9.1 million cash on hand.

JP Morgan Securities Inc., of New York, is the lead underwriter. Co-managers are CS First Boston Corp., of New York; Dain Rauscher Wessels, of Minneapolis; and Punk Ziegel & Co. LP, of New York.

Lexicon's proposed Nasdaq ticker symbol is LEXG.