WASHINGTON -- Amylin Pharmaceuticals Inc. made a silentfiling with the Securities and Exchange Commission on Nov. 27for an initial public offering of up to 3 million common sharesof stock.
With Amylin's entry, seven biotech companies have announced,but have not yet completed, IPOs this year.
The fact that biotechnology companies have continued to fileIPOs successfully after the Nov. 15 market plunge means "thatinvestors are persuaded that there is a lot of good technologyin private companies that have the potential to make successfulcompanies," said Cowen & Co. analyst David Stone.
"There is a lot of stuff queued up to come out in the Januarytime frame. Historically, the first quarter of the year has beenamong the most productive, if not the most productive, interms of total dollars raised within biotechnology," said Stone.
However, James McCamant, publisher of the MedicalTechnology Stock Letter in Berkeley, Calif., said the market'smood is much more pessimistic about biotech stocks.
"They missed the greatest windows of financing that we haveseen in biotechnology to this point," he said. "A lot of the cash isalready gone. It looks like they might get one more chance.Most of the biotechnology stocks were pretty hot today, butthey are going to have to be much quicker."
Amylin, based in San Diego, is developing drugs to treatdiabetes, including its proprietary amylin replacement andblockage therapies. Amylin is a hormone believed to play acentral role in regulation of glucose metabolism, according tothe company. Amylin has formed a strategic partnership withGlaxo Holdings plc to develop and market its amylin blockadetechnology.
The other companies with pending IPOs are Deprenyl USA Inc.,Allelix Biopharmaceuticals Inc., Agridyne Technologies Inc.,DNX Corp., Magainin Pharmaceuticals Inc. and Genta Inc.
New Jersey-based Deprenyl USA Inc., a unit of DeprenylResearch Ltd., is developing 5-aminolevulinic acid, a treatmentfor skin cancer. Allelix, of Mississauga, Ontario, is developingbiopharmaceuticals for tissue repair and inflammation.
Agridyne of Salt Lake City is developing new plant varietiesand plant-related products, including gene maps and DNAprobes, fungal and soil inoculants, and biological insecticides.DNX Corp. of Princeton, N.J., is developing recombinant humanhemoglobin using transgenic pigs to produce the hemoglobin.
Magainin of Plymouth Meeting, Pa., is developing drugs basedon a family of host-defense peptides, called magainins, to treatinfections and certain cancers, and to promote wound healing.Genta Inc. of San Diego is developing an antisense compoundsto treat chronic myelogenous leukemia.
-- Kris Herbst BioWorld Washington Bureau
(c) 1997 American Health Consultants. All rights reserved.