Three companies completed public offerings on Friday orafter-market trading Thursday that together grossed morethan $105 million.

Genzyme Tissue Repair, of Cambridge, Mass., grossed$45 million from the sale of 3 million shares at $15apiece. Vical Inc., of San Diego, grossed $30.6 millionwhen it sold 2.5 million shares at $12.25 per share. AndAmylin Pharmaceuticals Inc., of San Diego, grossednearly $30 million through the sale of 3.67 million sharesat $8.13.

All three of the companies cashed in at times when theirstock prices were significantly higher than they wereearlier in the year. Each stock price lost ground, however,on Friday.

Genzyme's tissue repair division (NASDAQ:GENZL)said much of the money raised is earmarked for itsCarticel program, which involves cartilage replacementtherapy.

The procedure is done by taking autopsies from patients,growing millions of cells and then implanting them backinto an area of the femur. Cells then integrate back intosurrounding tissue and mature into normal cartilage, thusrestoring proper movement to the knee.

Caren Arnstein, Genzyme's director of communications,said 15 Carticel patients have been treated to date, 63biopsies to grow cells have been taken, 55 physicianshave been trained and 152 more are scheduled fortraining. And another center to provide physician trainingfor the service is opening soon in Cambridge, she said.

"We are extremely pleased with the offering," Arnsteinsaid. "Nine months ago we went public at $5 per share;now we're able to sell these 3 million shares at $15 pershare."

Genzyme Tissue had $3.3 million in cash on June 30,1995, and now has 11.8 million shares outstanding.Arnstein said proceeds from the offering should take thedivision through 1996. (See BioWorld Today, Aug. 18,1995, p. 1.)

Underwriters for the offering were New York firms CSFirst Boston, Cowen & Co., and PaineWebber Inc.Genzyme Tissue's stock closed Friday at $15.13, down50 cents.

Amylin, J & J In Phase III For Diabetes Drug

Amylin sold 2.5 million of the shares in a public offering,and another 1.17 million ($9.5 million) to Johnson &Johnson Development Corp., a subsidiary of NewBrunswick, N.J.-based Johnson & Johnson. Amylin inJune signed a deal potentially worth $100 million withLifeScan Inc., another Johnson & Johnson subsidiary.The equity investment stemmed from that deal. (SeeBioWorld Today, June 22, 1995, p. 1.)

The companies recently started two Phase III studies withAmylin's pramlintide (formerly AC137), which mimicsthe effects of the pancreatic hormone amylin. It is beingdeveloped to help glucose control in Type I diabetes andin insulin-using Type II diabetics. The primary endpointis the reduction of glycated hemoglobin, a marker thatshows average blood glucose levels.

Amylin now has about 28 million shares outstanding. Thecompany has about $63 million, less what it spent sincethe end of June. Johnson & Johnson is paying half thedevelopment costs of pramlintide, will advance Amylin'sshare of pre-launch marketing expenses, and will coverany shortfalls Amylin might have in paying itsdevelopment costs.

"With the Johnson & Johnson agreement, if the clinicaltrials continue to be successful, we have put in placefinancial mechanisms for the continued development andcommercialization of pramlintide," said Richard Krawiec,Amylin's director of corporate communications. He saidthe Phase III program is expected to take about two and ahalf years.

Underwriters for the offering were Hambrecht & QuistLLC, of New York; Vector Securities International, ofDeerfield, Ill.; and UBS Securities Inc., of New York.Amylin's stock (NASDAQ:AMLN) closed Friday at$7.75, down 75 cents.

Vical Continues To Develop Gene Therapy Products

Vical will gross $28.8 million from the offering, plus anyoverallotment options that are exercised. Goldman, Sachs& Co. and Cowen & Co., both of New York, underwrotethe offering.

Vical now has about 15.3 million shares outstanding. Theproceeds, together with the $26 million Vical had on June30, 1995, should take the company through 1998, saidMartha Demski, the company's vice president and chieffinancial officer.

Vical's stock (NASDAQ:VICL) was trading at $8.75 onJuly 10, 1995 _ when Sandoz Ltd. offered $295 millionfor Genetic Therapy Inc. _ and has moved up since thenalong with other gene therapy companies.

Vical has two products in the clinic for various cancerindications. Allovectin-7, which contains a gene encodinga foreign tissue antigen, is in Phase II studies. Leuvectin,which contains a gene encoding interleukin-2, is in PhaseI/II studies. Neither product is partnered.

Demski said that Vical intends to take the products as faras possible with its own resources. At some point, shesaid, Vical will look for partnering arrangements inEurope. Vical's stock (NASDAQ:VICL) closed Friday at$12, down $1.25. n

-- Jim Shrine

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