Seragen Inc. became the third consecutive reduced-pricebiotech IPO on Wednesday, raising $36 million through the saleof 3 million shares of common stock at $12 a share.

The offering, which was slashed from a proposed price of $17to $20, follows scaled-down prices on offerings byCytoTherapeutics Inc. (NASDAQ:CTII) and TeliosPharmaceuticals Inc. (NASDAQ:TLIO).

Seragen shares (NASDAQ:SRGN) closed at $12.25 on Wednesday.

The Hopkinton, Mass., company is developing drugs based onfusion toxins, fragments of toxins linked to ligands that targetspecific cell surface receptors. Seragen's interleukin-2 fusiontoxin is in Phase II trials for IL-2 expressing leukemias andlymphomas and rheumatoid arthritis.

After the offering, Seragen has 12 million shares outstanding.

The shares were offered in the U.S. by underwriters Goldman,Sachs & Co. and Kidder, Peabody & Co. Inc., and internationallyby Goldman Sachs International Ltd. and Kidder, PeabodyInternational Ltd. The underwriters have a 450,000-shareoverallotment. -- KB

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