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

To: sjemmeri who wrote (4453)	8/11/2005 7:29:41 AM
From: Doc Bones	Respond to of 4974

Investors Find Coley's IPO Deal More Digestible Biopharmaceutical Firm, With Four Drug Candidates In Trials, Shows 18% Gain By LYNN COWAN DOW JONES NEWSWIRES August 11, 2005; Page C4 It is the market equivalent of a snowball in summer: An unprofitable biopharmaceutical company's initial public offering of stock showed double-digit gains. The IPO yesterday of Coley Pharmaceutical Group Inc. opened at $18.55, up 16% from its IPO price of $16 a share, and ended with an 18% gain on the Nasdaq Stock Market. Early-stage biopharmaceutical and medical-device IPOs have been difficult to sell to investors, but Coley's proved the exception. Coley's six million shares sold at the high end of their $14 to $16 per-share range. The stock closed at $18.88. Underwriters were led by Merrill Lynch & Co. and J.P. Morgan Chase & Co. A number of factors made Coley's deal more digestible than the average biopharmaceutical offering. The Wellesley, Mass., company has four drug candidates in clinical trials and is collaborating with a number of established pharmaceutical companies on their development, a sign that the drugs hold promise. The U.S. government has awarded the company three contracts to develop a drug that could enhance immune response to an anthrax vaccine. Pharmaceutical titan Pfizer Inc., which has a licensing agreement with Coley to develop a cancer drug called ProMune, agreed to purchase as much as $10 million of the company's common stock at the IPO price in a private placement. Joining Coley in early double-digit gains yesterday was Beijing-based China Medical Technologies Inc., a medical-device maker. China Medical gave up a chunk of those gains later in the day. The Chinese company rose 3% to $16.20, up 8%, on Nasdaq after selling 6.4 million American depositary receipts at $15 a share, at the midpoint of its expected range. Like Coley, China Medical had some attractive attributes -- among them profitability and a focus on the growing demand for medical technologies in China. The company, which manufactures high-intensity focused ultrasound equipment, saw its net income nearly double to $14.3 million in the year ended March 31. China Medical's ultrasound systems, acquired from developers at Peking University People's Hospital, are used in China for the noninvasive destruction of cancerous and benign tumors. <snip> online.wsj.com