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Biotech / Medical : Biotechnology Value Fund, L.P. -- Ignore unavailable to you. Want to Upgrade?

To: scaram(o)uche who wrote (3926)	5/27/2004 11:40:28 AM
From: sjemmeri	Read Replies (2) \| Respond to of 4974

From Briefingdotcom: 10:29 ET Two biotech IPOs price poorly: ACAD, CRTX : A couple of biotech IPOs price well below range today. Acadia Pharma (ACAD 7.00), and Critical Therapeutics (CRTX 7.00) both price at $7, well below their initial ranges of $12-$14 and $11-$13. The cos had subsequently reduced their ranges to $7-$8... Acadia focuses on small molecule drugs for the treatment of central nervous system disorders. It has five drug programs in clinical and preclinical development. The co has 3 clinical programs for treatment-induced dysfunction in Parkinson's disease currently in Phase II clinical trials... CRTX focuses on products designed to treat asthma and critical care diseases through the regulation of the body's inflammatory response. Its most advanced product is Zyflo, a tablet formulation of zileuton, which the FDA approved in 1996 for the prevention and chronic treatment of asthma. The co licensed from Abbott Labs exclusive worldwide rights to Zyflo. The co is in the process of changing manufacturing sites for Zyflo, and subject to FDA approval of these sites, it expects to begin selling Zyflo in the first half of 2005.... As with most small cap biotechs, the cos have little financials to speak of. The pricing on these deals are good examples of investors' distaste for biotech IPOs these days mainly because there have been so many this year, roughly one-third of IPOs in 2004. Also, two more are coming out tomorrow: ANLY and INHX, which does not bode well for them... ACAD and CRTX deal sizes are 5 mln (BofA and Piper are co-leads) and 6 mln (SG Cowen is the lead) and begin trading this morning... A thought to keep in mind is to keep these battered biotech IPOs in the back of your mind for biotech rallies later this year as many traders will forget these names. 10:06 ET AngioDynamics IPO prices below range (ANGO) 11.00: Medical device maker AngioDynamics prices its IPO at $11, below the expected $12-$14 range. Its parent company, E-Z-EM (EZM 17.90 -0.18)will retain an 82.5% stake. The co makes medical devices used in minimally invasive, image-guided procedures to treat peripheral vascular disease, or PVD. PVD is a condition in which the arteries or veins become narrowed, obstructed or ballooned. Over 11 mln Americans suffer from PVD. The co estimates that expenditures on PVD devices that the co currently sells will increase from $760 mln in 2002 to over $1 bln in 2007. Factors driving this growth include an aging population, higher incidence rates of obesity and diabetes, greater adoption of the minimally invasive procedures, greater public awareness of PVD symptoms etc. From FY00 to FY03, the co increased sales from $21.8 mln to $38.4 mln for a CAGR of 20.8%. During the same period, earnings went from a net loss to profits of $1.2 mln... This is the smallest deal of the four IPOs today with only 1.95 mln shares. The pricing is a bit disappointing given its size. At $11, the market cap is $122 mln or 3.2x sales which is not all that bad for a small cap profitable IPO. Perhaps the high number of deals today (4) and possibly three more tomorrow has diluted interest in any single name... RBC Capital is the lead underwriter and it will begin trading this morning.