BIOTECH MEETS THE INTERNET PART I
------------WSJ(7/28): Chemdex Shares Move 70% Higher Than IPO Price
Internet-related company but is more impressive considering that underwriters
had steadily increased the offering price from an estimated $9 to $11 earlier
this month. As recently as Monday, Chemdex filed documents with the Securities
and Exchange Commission indicating the offering would be priced between $12
and $14 a share.
Chemdex founder and Chief Executive David Perry, a 31-year-old former
biotechnology executive and Exxon Corp. refinery supervisor, holds shares
valued at approximately $44 million at yesterday's closing price. Chemdex's
largest shareholders are Warburg Pincus Ventures LP and the venture-capital
firm of Kleiner Perkins Caufield & Byers, each of which own slightly less than
10% of the company after yesterday's offering.
Chemdex aims to be an electronic middleman for the $9 billion "life
sciences" industry, connecting users such as biotech firms and university labs
with suppliers. Chemdex now lists 225,000 products from 110 suppliers and says
it plans to add 550,000 products by the end of the year.
Like many Internet-related IPOs, Chemdex is losing money, reporting a loss
of $6.8 million on revenue of $165,000 for the first three months of this
year, the latest figures available. The company has shown losses of $15.7
million since its founding and says in its prospectus it expects to continue
losing money for "the foreseeable future."
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