Genzyme Transgenics Corp. closed its initial public offering onFriday, grossing $12 million on sales of 1.5 million shares at $8each.
The common stock (a total of 5.5 million shares areoutstanding) also started trading Friday on the NASDAQ systemas GZTC. The offering is being managed by PaineWebber Inc.and Kidder, Peabody & Co. Inc.; the underwriters have anoption to purchase up to 225,000 additional shares to coveroverallotments.
Genzyme Transgenics filed its IPO on May 14 and was hopingto sell 2 million shares at $9-11 each. But even if it came upshort of expectations, this is the first biotechnology IPO tocomplete since May 12, when Telor OphthalmicPharmaceuticals Inc. (NASDAQ:TELR) sold 2.5 million shares at$8. That offering also fell short of its goal; Telor was hopingthat its shares would go for $12-14.
Genzyme Transgenics was formed in December 1992 as awholly owned subsidiary of Genzyme Corp. (NASDAQ:GENZ),which now owns about 73 percent of GZTC common stock.
The new business, based in Framingham, Mass., was launchedto commercialize the use of transgenic animals to maketherapeutic proteins. It has already reported the successfulproduction of tissue plasminogen activator (t-PA) in the milk oftransgenic goats, and of the CFTR protein (cystic fibrosistransmembrane regulator) in transgenic mice, said SusanCogswell, Genzyme's director of investor relations.
-- Jennifer Van Brunt Senior Editor
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