GalaGen Inc., which is developing polyclonal antibodies derivedfrom the milk of cows, said Wednesday it completed an initial publicoffering of 2 million shares at $10 apiece.

The $20 million raised is less than what the company was seekingwhen it originally proposed an offering of 2 million shares at $11 to$13. Underwriters Montgomery Securities, of San Francisco, andA.G. Edwards & Sons Inc., of St. Louis, have an overallotmentoption on an additional 300,000 shares. (See BioWorld Today, Feb.7, 1996, p.1.)

GalaGen, of Arden Hills, Minn., was spun off in 1991 from the dairycooperative, Land O'Lakes Inc. It uses antibodies derived fromcolostrum (the milk from a cow soon after it gives birth) indeveloping antibodies for treating gastrointestinal diseases.

Land O' Lakes, of Arden Hills, is GalaGen's largest shareholder. Itsstake was reduced in the offering from 23 percent to about 16percent.

GalaGen's lead product is Sporidin-G, a polyclonal antibodytargeting Cryptosporidium parvum. It recently initiated a double-blind, placebo-controlled Phase II study in 90 C. parvum patients.

GalaGen's stock (NASDAQ:GGEN) closed Wednesday at $10. _Jim Shrine

(c) 1997 American Health Consultants. All rights reserved.