|
GenVec IPO up 4 percent
|
 |
December 12, 2000: 5:43 p.m. ET
Genomics firm gains ground after slicing offering and pricing below earlier range
|
NEW YORK (CNNfn) - Genomics company GenVec Inc. rose 4 percent on its first day of trading Tuesday, after cutting the expected range of its initial public offering and then pricing below.
Shares of GenVec rose 38 cents to $9.88 on the Nasdaq.
The company was considered by analysts to be one of the most promising IPOs of the week, but Monday, GenVec cut its planned range to between $11 and $12 from $14-to-$16, a strategy followed by recent IPOs to drive demand.
Holliston, Mass.-based Harvard Bioscience Inc. (HBIO: Research, Estimates) gained 31 percent last Thursday, after slicing its planned offering by more than one-third. On Nov. 29, Rigel Pharmaceuticals Inc. (RIGL: Research, Estimates) managed to rise 9 cents in its debut but only after chopping its deal several times.
 GenVec followed a similar route, selling 4 million shares at $9.50, raising $38 million, well below the $60 million initially anticipated.
Gaithersburg, Md.-based GenVec (GNVC: Research, Estimates) develops gene-based products that produce proteins at the site of disease. GenVec's therapy attempts to induce new blood vessel formation in the heart and elsewhere in the body. The company's lead product candidate, Biobypass Angiogen, treats insufficient blood flow in the heart and legs. Biobypass was developed with Warner-Lambert and is in Phase II clinical trials with the Food and Drug Administration.
The company is not profitable, however, which was a concern for analysts. GenVec had revenue of $16.95 million in 1999, but lost more than $1.9 million. 
|
|
|
|
|
|
GenVec
|
Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney
|
|
|
|
 |
|
