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Biotechs take IPO lead
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March 26, 2000: 11:27 a.m. ET
After lackluster week, analysts think Luminex, Intrabiotics, others could soar
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NEW YORK (CNNfn) - After a relatively slow week that saw few new issues provide the high-flying returns IPO investors have become accustomed to, analysts hope a host of health care and biotech issues set to debut this week cures the market's recent doldrums.
Nearly half of the 18 new issues expected to price and begin trading this week are biotech or health care related. They hit the market at a somewhat ominous time; several biotech shares remain mired in a mini-slump due to concerns raised two weeks ago that the government wants scientists to have free access to corporate research on the charting of human genes.
But analysts expect several of the new issues to perform well this week as investors begin to shake off those jitters.
"We haven't seen as many of those break through deals the past two weeks, and next week is going to be more of the same," said Irv DeGraw, research director with WorldFinanceNet.com. "But there's a lot more strength in the biotech market than the last two week's run on the sector would indicate."
 One of DeGraw's top picks for the week is Luminex Corp., an Austin, Texas-based company that developed a technology platform designed to simplify biological testing for the life sciences industry.
The company, expected to price 4.5 million shares at between $17 and $19 per share, is being compared to biological testing company Aclara Biosciences Inc. (ACLA: Research, Estimates), which debuted last week and more than doubled on its first day of trading.
"It's not going to set the world on fire, but it's going to be a good deal," DeGraw said.
Another new stock expected to draw some attention is Intrabiotics Pharmaceuticals Inc., "IBPI," a developer of new antibacterial and antifungal drugs.
Intrabiotics is racing to become the world's first developer of drugs used in the prevention of certain bloodstream infections, although its products are still in the development phase.
Expected to raise roughly $105 million by issuing 7.5 million shares at between $13 and $15 per share, Intrabiotics also ranks as one of the week's largest IPOs.
Among technology companies, Telocity is drawing a great deal of attention for its efforts to take broadband services directly to the residential customer.
Since most broadband customers concentrate on providing services to corporate customers, Telocity currently has no significant competitors and recently signed a strategic agreement with NBCi to develop independent, interactive online services.
The company, which will trade under the ticker "TLCT," expects to raise roughly $121 billion by selling 11 million shares at between $10 and $12 per share.
Investors are also expected to embrace Intershop Communications, a leading provider of electronic commerce software worldwide and the week's largest new issue.
The Hamburg, Germany-based Internet software company has yet to declare an expected trading range for its stock, but has said it will raise a maximum of $356 million, which would equate to roughly $81 per share.
Perhaps the week's most intriguing new issue is a company called Artistdirect Inc., a Encino, Calif.-based online company that allows customers to download music directly from the recording artists.
Although IPO analysts are generally cool on the company's business model, the company poses a unique threat to retail chains and other online music sites like MP3.com, which act as an intermediary between the artist and the customer.
Artistdirect expects to float 5 million shares at $10-to-$12 per share. The company's will trade under the ticker "ARTD." 
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