Gene Logic's public offering nets $24 million Biotechnology company sells 3 million shares

Stocks

November 22, 1997|By Mark Guidera | Mark Guidera,SUN STAFF

Columbia-based Gene Logic raised $24 million yesterday in an initial public offering, one of at least 13 such offerings to hit Wall Street on the same day.

Gene Logic, the second Maryland biotechnology company to go public this year, sold 3 million common shares.

When trading began yesterday, Gene Logic shares opened at $8 but finished the day at $7.62.

The $24 million raised was less than the $33 million, or the $11- $12 per share price, the company and its underwriters had expected.

One reason for the lower price, analysts said: a flooded IPO market this week despite weakening demand for initial offerings.

Gene Logic, which uses a novel computerized system to analyze patterns in active genes and their possible roles in disease, said in its prospectus that it planned to use the proceeds to fund research and capital expenditures. It may also use some of the money for acquiring complementary technologies.

Gene Logic has established drug research alliances with Procter & Gamble and Japan Tobacco Inc., a diversified holding company. The company reported a net loss of $4.6 million on revenue of $774,000 in the first nine months of this year. It has research initiatives in the fields of heart disease, renal disease, central nervous system disorders, osteoporosis and prostate cancer.

The offering was underwritten by BancAmerica Robertson Stephens, Hambrecht & Quist LLC and UBS Securities LLC.

Pub Date: 11/22/97

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