Although the pace of initial public stock offerings has slowedsince the heady days of this spring, there's still room forcompanies with solid stories to tell.
Systemix Inc. and Biomatrix Inc., both of which have productsin advanced stages of development, announced IPOs lateTuesday at the top of their respective price ranges.
Systemix of Palo Alto, Calif., sold 2 million shares at $18. Theproposed price range had been $16 to $18. Systemix, whichdeveloped the SCID-hu immunodeficient mouse, is alsodeveloping products based on human hematopoietic stem cellsand human megakaryocyte cells. Hematopoietic stem cells giverise to all circulating blood cells, and megakaryocytes giverise to blood clot-forming platelets.
Systemix stock (NASDAQ:STMX) got a vote of confidence frominvestors, closing at $20.75 on Wednesday.
Underwriters for the offering are Merrill Lynch & Co., S.G.Warburg Securities and Donaldson, Lufkin & JenretteSecurities Corp.
Biomatrix sold 2.8 million shares at $10 each, up from aproposed 2.3 million-share offering with an $8 to $10 pricerange. Stock of the Ridgefield, N.J., company (NASDAQ:BIOX)closed at $10.75 on Wednesday. After the offering, Biomatrixwill have 8.6 million shares outstanding.
George Oram Jr., president and chief executive officer, said thecompany has nine products in clinical trials and will bemarketing products next year in Canada, giving it near-termrevenue prospects.
The company is developing a class of patented biopolymers,called hylans, which are modified forms of hyaluronic acid.Applications for the hylans include devices to treatosteoarthritis and urinary incontinence. -- Karen Bernstein
(c) 1997 American Health Consultants. All rights reserved.