Penederm Inc., a company that specializes in technologies thatallow for the topical delivery of drugs and skin-care agents fortreating dermatologic disorders, has begun trading its stock onthe NASDAQ National Market System.

Penederm (NASDAQ:DERM) of Foster City, Calif., raised $22million in its initial public offering of 2 million shares at $11per share. The stock started trading Wednesday. Volpe, Welty& Co. managed the offering, for which the company filed itsprospectus with the Securities and Exchange Commission onAug. 26.

Penederm's patented delivery technology consists of an arrayof liquid polymers, which vary by molecular size and structureand are designed to deposit and hold drugs and skin-careagents at targeted levels on and in the upper layers of the skin.

Penederm, which intends to use its technology to deliver in-licensed or off-patent drugs, is currently developing productsfor treating acne, fungal infections, psoriasis and skin cancer, aswell as anti-wrinkling treatments and skin protectants.

In September, Penederm submitted new drug applications withthe FDA for its first prescription drug products, retinoic acidformulations for treating acne. The company has also appliedfor regulatory approval to market these products in Canada.

Penederm's stock was up 13 cents a share on Wednesday,closing at $11.88.

-- Jennifer Van Brunt Senior Editor

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