Cygnus Therapeutic Systems of Redwood City, Calif., said it soldlast Thursday a previously announced initial public offering of3 million shares of common stock at $9 per share. Proceeds ofabout $25.1 million will be used to purchase production andresearch equipment, and for working capital.

The stock (NASDAQ:CYGN) closed Friday at $11 a share.

Following the offering, Cygnus has 10.6 million common sharesoutstanding. Underwriters, led by Robertson, Stephens & Co.and Hambrecht & Quist Inc., have an option to purchase up to450,000 additional shares.

Cygnus, which develops transdermal drug-delivery systems,said in its offering prospectus that it recorded a $3.7 millionloss on revenues of $2.6 million for the nine months endedSept. 30.

The prospectus lists as Cygnus' largest shareholders after theIPO: Gary W. Cleary, Cygnus' chairman, who holds 19 percent ofCygnus' common stock; entities associated with the investmentfirm of Alan Patricof Associates Inc. of New York, with an 11.5percent stake; Elf Technologies Inc. of Stamford, Conn., with 9.9percent; and Matrix Partners II L.P. and Technology VenturePartners, both of Menlo Park, Calif., with 6 percent. -- KarenBernstein

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