NeXagen Inc. announced Friday that it has completed its initialpublic offering of 2 million shares of common stock at $11.50per share.

The $23 million funding is somewhat less than NeXagen hadsought. In its prospectus, the company proposed selling 2million shares at a range of $13-15 per share. NeXagen ofBoulder, Colo., filed silently for the IPO on Nov. 24. Theunderwriters for the offering are Alex. Brown & Sons Inc. andS.G. Warburg and Co. Inc.

Upon completion of the offering, NeXagen will have about 10.6million shares outstanding and more than $40 million in cashand cash equivalents. NeXagen anticipates that the money fromthe offering will fund operations for approximately three years.

Founded in 1991, NeXagen is focused on the discovery anddevelopment of novel oligonucleotide-based pharmaceuticals.It has a proprietary technology for making high-affinity nucleicacid ligands targeting small molecules that can be used torapidly identify lead compounds. The chemistry technology istermed SELEX (systemic evolution of ligands by exponentialenrichment).

NeXagen has collaborative agreements with Eli Lilly and Co.,Becton Dickinson & Co. and Schering AG (see BioWorld, Dec. 7).

The proceeds from the offering will be used to fund researchand development, particularly in the areas of oncology andrestenosis, and for capital expenditures. NeXagen will tradeunder the NASDAQ symbol NXGN. -- Brenda Sandburg

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