Supported by major individual investments by its chiefexecutive and by software magnate William Gates, Icos Corp. onWednesday said it has raised $27 million in a secondaryoffering of 3 million shares of common stock at $9 per share.

George Rathmann, chairman, president and CEO of Icos, andGates, an Icos director and chairman of Microsoft Corp., spent$4 million to buy 300,000 shares and 150,000 shares,respectively. Earlier this month, Icos added a supplement to itspreliminary prospectus dated Feb. 24, when Rathmann andGates said they would buy up to 1 million and 500,000 shares,respectively.

In 1990, Icos raised a then-record $33 million in its first roundof private financing, but this is the second time it has beencaught in weak public offerings markets. When Icos filed for itsoffering, the stock (NASDAQ:ICOS) was trading above $12.

Last June, Icos raised $36 million in an IPO of 4.5 millionshares at $8, the low end of its $8-to-$10 price range. That wasa good performance, given that several biotech companiesslashed their offering prices last spring.

Icos shares lost $1 on Wednesday, closing at $8.13.

The company, which is developing products to treat chronicinflammatory diseases, has no products slated to enter theclinic this year. In October 1991, Icos formed a collaborationwith Glaxo Holdings plc to develop drugs for inflammatory andcardiovascular diseases.

After the offering, the Bothell, Wash., company has 24.7 millionshares outstanding. Underwriters PaineWebber Inc. andLehman Brothers have a 450,000-share overallotment option.

-- Karen Bernstein BioWorld Staff

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