Creative BioMolecules Inc. announced Tuesday that it has filedan initial public offering of 3 million shares of common stock atan estimated price range of $7 to $9 per share.

The underwriters of the offering, Montgomery Securities andPrudential Securities Inc., have an option to purchase up to450,000 additional shares to cover overallotments. Thecompany will trade on the NASDAQ under the approved symbolCBMI.

Creative Biomolecules originally filed a registration statementwith the Securities and Exchange Commission in March for anIPO of 2.5 million shares of common stock at $8 per share, butwithdrew the offering due to poor market conditions.

"The market was tough, and we didn't see any sense in sellingstock and watching the price drop," said Wayne Mayhew, vicepresident and chief financial officer. Mayhew said the companydidn't need the money then and decided to either delay theoffering until the market improved or adopt another financingstrategy.

According to Mayhew, Creative Biomolecules will use themoney for product development and constructing facilities,mainly production facilities. "We haven't licensed out too muchof our technology, so we still have major funding obligations tomeet," he said.

"It seems like the market is more hospitable right now, andwe're encouraged by local successes such as Ligand and Cortechthat have come out and performed well," Mayhew said.

Founded in 1982 and based in Hopkinton, Mass., CreativeBioMoleculeshas primarily been funded by venture capital andrevenues from collaborative relationships, Mayhew toldBioWorld.

The company is developing proprietary protein-based productsfor the regeneration and repair of human tissues, using twoclasses of naturally occurring proteins -- morphogenic proteinsand growth factors -- that act as signals in initiating andregulating tissue and organ formation.

Creative's product portfolio includes its lead morphogenicprotein product, recombinant human OP-1, which enteredhuman clinical trials earlier this year to determine the safetyand efficacy in treating non-union bone fractures.

In October the company filed an investigational deviceexemption (IDE) application with FDA for the regeneration oftooth dentin in humans. In 1993 the company expects to filethree investigational new drug (IND) applications to evaluatepotential products for prevention of oral mucositis, restorationof periodontal tissue and accelerated healing of duodenalulcers.

-- Michelle Slade Associate Editor

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