BioMedicines, Which Acquires Drug Candidates, Files IPO
WASHINGTON, Nov 3 (Reuters) - BioMedicines Inc., which acquires drug candidates in the areas of cancer, immunology and infectious disease, filed on Friday to raise $57.5 million in an initial public offering of common stock.
The Alameda, Calif.-based firm plans to use the net proceeds for development activities, including clinical trials, acquisition of drug candidates and general corporate purposes, it said in a Securities and Exchange Commission filing.
BioMedicines will reveal later the exact number of shares it plans to sell and their price range. The biotechnology company has gone ahead and applied for a Nasdaq listing under the symbol "BIOS" Nasdaq:BIOS - news).
UBS Warburg will manage the IPO with assistance from U.S. Bancorp Piper Jaffray and Pacific Growth Equities.
BioMedicines said a key component of its strategy is to acquire rights to develop, market and manufacture drug candidates that were previously pursued for commercial development by others.
It has initiated new clinical development programmes for three of the five drug candidates in its portfolio. They include atamestane for metastatic breast cancer in post-menopausal women and omega interferon for patients with chronic hepatitis C.
The company acquired the rights to the three drug candidates under agreements with Schering AG (quote from Yahoo! UK & Ireland: SCHG.F), Boehringer Ingelheim International GmbH and G.D. Searle & Co.
BioMedicines, which began operations in March 1997, has never generated revenue from any products and has posted significant net operating losses. As of Sept. 30, 2000, it has an accumulated deficit of $13.2 million.