PathoGenesis Corp., grossed $30 million from an initialpublic offering of 3 million shares at $10 each.

The Seattle company, founded early in 1992, now hasraised about $63 million. It has 10.9 million sharesoutstanding. Prudential Securities Inc., and Needham &Co. Inc., both of New York, and Pacific Growth EquitiesInc., of San Francisco, underwrote the offering and havean option to purchase an additional 450,000 shares.

The stock (NASDAQ:PGNS), which went public lastweek, closed Monday at $10, down 25 cents.

PathoGenesis' lead drug candidate is TOBI (PA-1005),which is in Phase III studies for the treatment of chroniclung infections in cystic fibrosis patients. PA-1648 is inPhase I trials for Mycobacterium avium complexinfections in AIDS patients. Both are formulations ofexisting antibiotics, and targeted for broader indicationsonce development is completed in the initial areas.

The company's three major technical programs aremolecular genetics for the discovery of new approachesto the treatment of known pathogens; molecularmicrobiology with a similar intent; and a combinatorialchemistry program for discovery of new candidates.

The main technology in the molecular genetics area isrepresentational difference analysis, a technique forsubtraction of normal DNA sequences from diseasedtissue. That technology was licensed exclusively fromCold Spring Harbor Laboratory, of New York.

One of the company's approaches relates to its discoveryof an association between human herpes virus 6 andmultiple sclerosis. A preclinical compound, PA-1093, hasbeen shown to inhibit the virus.

PathoGenesis' molecular microbiology program usesreporter gene assays, or "smart screens," differential geneexpression selection technology and virulence genedetection approaches. n

-- Jim Shrine

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