Ostex International Inc., a Seattle-based company developingdiagnostics and drugs for skeletal diseases, has raised $33.25 millionin an initial public offering (IPO) of 3.5 million shares at $9.50 pershare.

Ostex's lead product is a non-invasive test for measuring boneresorption, which can signal the onset of osteoporosis and other bonedegenerative diseases. The company's Osteomark immunoassay wassubmitted for FDA approval in November and already is on themarket in Europe, Canada, New Zealand and Australia.

Founded in 1989, Ostex has collaborations with Merck & Co., ofWhitehouse Station, N.J., and Boehringer Mannheim-Diagnostics, adivision of London-based Corange Ltd.

The IPO boosted Ostex's number of shares outstanding to about 12million. Underwriters for the public offering were CS First Bostonand Invemed Associates Inc. Net proceeds to Ostex totaled about$30.1 million following expenses.

Ostex said its diagnostic technology is based on measuring molecularfragments of collagen that have broken down and are present in bodyfluids, such as urine.

In addition to diagnostics, the company said it was developingtechnology aimed at preventing bone deterioration.

Ostex's stock (NASDAQ:OSTX) closed Tuesday at $9.62, up 12cents. _ Charles Craig

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