NPS Pharmaceuticals Inc. on Thursday announced completion of itsinitial public offering, which was originally filed on Jan. 21. The SaltLake City company sold 2 million shares of common stock at $5.50 pershare, grossing $11 million with a net of $9.7 million.Hambrecht & Quist Inc., Vector Securities International Inc. andYamaichi International served as managing underwriters. They have a30-day option to purchase 300,000 shares to cover overallotments.NPS, which is developing small-molecule drugs targeting ionregulators, specifically calcium ion regulators, originally filed to sell2.5 million shares at $8 to $10 per share. An amendment filed laterindicated the company was willing to reduce the price to $6 per shareand the offering to 1.5 million shares. On March 25 the companyannounced it was postponing its IPO because adverse marketconditions would have resulted in the company raising less than itwanted."We're pleased at how the current group of underwriters were able tobring it to market in what we feel is still a difficult marketenvironment," Robert Merrell, finance and administrative director forNPA, told BioWorld. "They were able to bring a greater number ofclients into the IPO."It also helped that NPS completed Phase I clinical trials in April of itslead compound, NPS R-568, for the treatment ofhyperparathydroidism, an age-related disorder characterized byexcessive secretion of parathyroid hormone, resulting in elevatedserum calcium. The compound is an agonist to the calcium receptor onthe parathyroid gland.Following the offering, NPS has 6.7 million shares outstanding, andabout $16.5 million cash, which the company expects will take itthrough September 1995.NPS has a November 1993 collaborative agreement with SmithKlineBeecham for development and commercialization of drugs to treatosteoporosis and related bone and mineral disorders. The deal includeda licensing fee to NPS as well as future milestone and research supportpayments. NPS also has a March 1993 collaboration in which it issponsoring research at Brigham and Women's Hospital.
-- Jim Shrine
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