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Dyax shares soar 72%
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August 15, 2000: 4:40 p.m. ET
Biotech firm's deal leads new issues; Lexar and SynQuest trade nearly flat
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NEW YORK (CNNfn) - Dyax Inc., a biotech firm, emerged as the only strong new issue Tuesday, climbing 72 percent while digital film maker Lexar Media Inc. and software provider SynQuest Inc. both traded essentially flat in their debuts.
Dyax Inc. rose 10-3/4 to 25-3/4 after raising $60 million Monday. The company sold 4 million shares at $15 each via J.P. Morgan.
Up until this year, biotech-related deals were rare in the IPO market but a slew of biotechnology companies have launched their IPOs recently. But the once-surging group now is seeing signs of a slowdown. On Friday, only one biotech out of four, Lion Biosciences Inc., produced a strong premium.
 "The IPO window for biotech stocks is closing," said Jim McCamant, editor of the Medical Technology Stock Letter, which focuses on biotech stocks.
McCamant credits the genome breakthrough this year with causing Wall Street to take notice of biotech deals. But insiders expect the biotech rally to end soon.
"People were rushing to get them out while they could," he said. "You tend to get lower quality deals at end of a period."
Dyax has developed a method called phage display that uses bacteria to identify compounds it says can be used to treat and diagnose diseases. The Cambridge, Mass.-based company has formed 10 collaborative agreements with partners such as Amgen Inc. (AMGN: Research, Estimates) and Human Genome Sciences Inc. (HGSI: Research, Estimates)
Dyax (DYAX: Research, Estimates) also makes chromatography separation systems under the Biotage name that use disposable cartridges to purify and separate pharmaceuticals for research and clinical development.
Waiting out the rush
SynQuest Inc. inched up 7/32, or 3 percent, to 7-7/32 after finally making its appearance in the new issues market Tuesday. The deal was slated to begin trading last week but didn't price until Monday, raising $35 million. Norcross, Ga.-based SynQuest (SYNQ: Research, Estimates) sold 5 million shares at $7 each, down from the initially planned 7.2 million shares at $9-to-$11 each, via underwriters led by Bear Stearns.
SynQuest Inc. provides e-business software that seeks to improve the supply chain performance of traditional bricks-and-mortar companies. The software lets clients such as Ford Motor Co. (F: Research, Estimates), B.F. Goodrich Co. (GR: Research, Estimates), and Reynolds Metal Co. fulfill orders as quickly and as profitably as possible.
SynQuest chose to avoid the 30 companies that launched their IPOs last week, said Tim Harvey, the company's president and chief operating officer.
"We were quite surprised given the time of year," he said. "We were in consultation with our bankers and decided to wait until today."
While the company's shares have not risen dramatically, Harvey said he was satisfied with the company's performance.
"We're happy we were able to complete the IPO and are excited with the opportunity we have," he said.
SynQuest targets brick-and-mortar firms focused on the business-to-business sector.
"We help them come up with plans that help companies manage their own enterprise and supply chain," Harvey said. "We look to do it in such a way that maximizes profit."
SynQuest had an operating loss of $11.3 million on revenue of $17.2 million for the nine months ended March 31.
After the IPO, Warburg, Pincus Investments will hold a 64.3 percent stake.
The other
Lexar Media Inc. closed flat at 8 after selling 6.5 million shares at $8 each via underwriters Chase H&Q. Lexar had planned to offer 7.5 million shares at $11-to-$13 each.
Fremont, Calif.-based Lexar Media (LEXR: Research, Estimates) develops high-performance digital film and connectivity products for the digital photography market. Lexar's technology makes it easier to transfer digital images from digital film to personal computers, the company said in a filing with the Securities and Exchange Commission.
Lexar's film is compatible with nearly all digital cameras, including Kodak, Minolta, and Canon. The company's photofinishing site, printingroom.com, supplies digital images as well as photo sharing services. 
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