Penederm Inc. said Friday that 1.7 million shares of common stockheld by original investors will be offered to the public by the end ofthis month.The Foster City, Calif., company filed an amended registrationstatement with the Securities and Exchange Commission Thursday inpreparation for the sale.Penederm went public last year. Most of the 1.7 million shares beingsold are held by Penederm's venture capital and institutional backers,whose lock-up agreements expired.Edgar Luce, Foster City's vice president of finance, said the companywill receive no proceeds from the stock sale.In addition to the 1.7 million shares, another 2 million will becomeavailable as additional lock-up agreements expire.The Foster City, Calif., company specializes in technologies for thetopical delivery of drugs and skin-care agents to treat dermatologicaldisorders.Penederm raised about $25 million in its initial public offering of 2.3million shares last November at $11 per share. The company has 6.9million shares outstanding. The stock (NASDAQ: DERM) closedFriday at $10.50, up 25 cents. _ Charles Craig

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