Cytel Corp., a developer of carbohydrate-based treatments forinflammatory conditions, has filed for an initial publicoffering of common stock.
Cytel, which Wednesday confirmed that it has done a "silent"filing for its IPO, revealed few details of the offering. About2.5 million shares will be offered through underwritersGoldman, Sachs & Co. and Alex. Brown & Sons Inc.
On Tuesday, the San Diego company said it had agreed toacquire GlycoGen Inc. for an undisclosed sum.
GlycoGen of South San Francisco, Calif., in 1990 was spun offof Genencor International, a biotech company specializing inlarge-scale enzyme production, to conduct research anddevelopment in complex carbohydrates.
Cytel is buying GlycoGen to gain access to its technology andits collaborative relationship with Genencor, said JerylHilleman, vice president of finance and operations at Cytel.Neither Cytel nor GlycoGen have any compounds in preclinicaldevelopment.
GlycoGen's core technology is focused on fucosyl transferase,an enzyme important in the synthesis of certain carbohydrates,said Hilleman.
GlycoGen also has technology-sharing and contract-manufacturing rights with Genencor, which will give Cytel away to scale up production of carbohydrates, Hilleman said.
Cytel is developing cell adhesion molecules to treat chronicinflammatory diseases such as rheumatoid arthritis, and acuteinflammatory diseases such as reperfusion injury and septicshock.
The company has applied to be traded on NASDAQ under theproposed symbol "CYTL." It has raised $7 million in venturefunds since it was founded in 1987. In 1989, the company alsoreceived about $10 million of equity financing from SandozLtd. The companies are developing treatments for rheumatoidarthritis, based on the major histocompatibility complex. --Karen Bernstein
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