Connective Therapeutics Inc. on Thursday completed an initialpublic offering(IPO) of 2.5 million shares at $11 per share, grossing$27.5 million.
The Palo Alto Calif., company now has about 7.4 million sharesoutstanding. On Dec. 31, 1995, Connective reported about $9 millionin cash with a loss for the year of $10.4 million.
New York-based firms Smith Barney Inc.; Dillon, Read & Co. Inc.;and Punk, Ziegel & Knoell L.P. underwrote the offering. They havean option on an additional 375,000 shares.
The company, founded in 1993, is preparing this year to initiate atleast five clinical trials. The lead product, licensed from GenentechInc., of South San Francisco, is gamma interferon, which Connectiveis developing for dermatological indications. A Phase II/III trial ofgamma interferon is planned in atopic dermatitis, as is a Phase II inkeloids, or enlarged scars caused by excessive collagen in the skin.
A Phase II study of relaxin, a natural protein licensed fromGenentech, is planned in scleredema, a condition caused by excessivecollagen.
Also under development at Connective is a T-cell receptor peptidevaccine. Additional studies are planned this year in multiple sclerosis,and a Phase I is expected to begin in rheumatoid arthritis.
The company's stock (NASDAQ:CNCT) closed Thursday at $11.25_ Jim Shrine
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