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Biotech / Medical : STEM -- StemCells, Inc. -- Ignore unavailable to you. Want to Upgrade?

To: scaram(o)uche who wrote (488)	6/15/2000 11:24:00 AM
From: scaram(o)uche	Read Replies (1) \| Respond to of 805

biz.yahoo.com Wednesday June 14, 7:34 am Eastern Time Modex sets IPO, looks to expansion (UPDATE: Adds comments from company CEO, CFO) By Alice Ratcliffe ZURICH, June 14 (Reuters) - Swiss biotech company Modex Therapeutics Ltd said on Wednesday it will offer up to 495,000 shares in an initial public offering to be listed on June 23, and will use the money it raises to expand in its key markets. The indicated price range is between 148 and 168 Swiss francs per share, valuing the entire company at 191-217 million Swiss francs ($117-134 million). Modex, based in Lausanne, is known for its ``T3R'' technology -- tissue repair, replacement and regeneration. Its focus is later stage development rather than primary research and thus sees itself as an acquirer of technology, keeping its own research costs relatively low. ``Skin is our business,'' Chief Executive Officer Jacques Essinger told a media briefing to give details of the offering. ``We want to grow further. We want to continue to extend our pipeline,'' he said. Lead manager is Swiss private bank Vontobel . It expects about three quarters of the offering to be placed with institutional clients. The offering totals 435,000 shares equal to 33.8 percent of capital. The greenshoe option is for a further 60,000 shares. Bookbuilding will be from June 14 to June 22, with a listing set for June 23 on the Swiss SWX New Market. Modex's first revenue-bringer will be Epidex, a skin substitute grown from a patient's own hair cells. Modex also has two other main products in the pipeline: -- BioDelivery is an implant system to treat chronic diseases to such as anaemia, Hepatitis C, and multiple sclerosis. -- BioPancreas aims at treating diabetes. Modex expects to develop this in a joint venture with a device maker. Epidex is already used clinically in Europe, where sales are starting in Germany through a distribution partner. Essinger says all potential Epidex competitors are U.S.-based, including Organogenisis Inc's (AMEX:ORG - news) Apligraf, although the products could be complementary to some degree. The timetable for U.S. sales depends on whether Epidex is classed as a drug, requiring a longer approval process, or a device. Sales are also planned in Japan. Results of further trials will aim to give Epidex automatic insurance reimbursement, and also could determine how the U.S. Food and Drug Administration (FDA) rates Epidex. BREAK-EVEN BY 2003 Chief Financial Officer David Jones said Modex now aims for a market penetration for Epidex of about three percent by 2003, when Modex is also looking to break even on the product. Three percent penetration would mean sales of 10 million Swiss francs ($6.16 million) to 12 million ($7.39 million). Modex believes Epidex could have a market penetration of 15 to 20 percent over the next five to 10 years. All current shareholders have a lock-up of at least six months after the IPO. Management has an additional lock-up period of 18 months with a 25 percent release every six months. The largest shareholder now is Swiss private bank Lombard Odier through its Immunology Fund. Others are Alta Partners, Alta Berkeley, Atlas Venture, Banexi Ventures, Novartis Venture Fund , 3i Group Plc (quote from Yahoo! UK & Ireland: III.L) and SETE Venture. ($1 equals 1.623 Swiss Franc)