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Lion Biosciences roars
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August 11, 2000: 7:22 p.m. ET
Biotech climbs 25%; Equinix up 9%; other deals produce lackluster gains
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NEW YORK (CNNfn) - Lion Biosciences Inc. emerged as the only biotechnology-related deal to produce a strong premium Friday, climbing 25 percent, while other initial public offerings produced lackluster gains.
Thirty initial public offerings priced this week raising $5.27 billion, the busiest week since September 1996 when 35 IPOs priced, according to data from CommScan, a New York-based investment banking firm.
But only a handful of deals performed well. Analysts said underwriters are trying to push out as many deals as possible before heading off for a brief summer break.
"The market is just washed out right now," said Irv DeGraw, research director at WorldFinanceNet.com. "There's no rhyme or reason to the valuations."
The Lion awakes
German firm Lion Biosciences rose 10-1/2, or 25 percent, to 49-1/2 after raising $182 million with the sale of 4.5 million American depositary receipts (ADRs).
 Lion (LEON: Research, Estimates) is a biological information technology company that provides genomics and life science information to help speed drug discovery and life science research.
In 1999 the company made more than $9 million, but lost more than $12 million.
"Lion was not really too big a surprise," said DeGraw. "It's a major player in its field ... the leading company in Western Europe."
Dismal returns
While Lion Biosciences produced a strong premium, other biotech-related deals weren't as lucky.
Compugen Ltd., the second biotech deal, rose only 1-1/8, or 11 percent, to 11-1/8. Compugen (CGEN: Research, Estimates) raised $50 million after selling 5 million shares at $10, the bottom of its anticipated $10-to-$12 range. Robertson Stephens served as lead underwriters.
Tel Aviv, Israel-based Compugen uses math, computer science and molecular biology to improve the understanding of genomics - the magic word with IPO investors.
American Medical Systems Holdings inched up 9/16, or 5 percent, to 11-9/16 after pricing at the bottom of its range, led by U.S. Bancorp Piper Jaffray. The company priced 6.25 million shares at $11 each, the bottom of its anticipated $11-to-$13 range.
Minnetonka, Minn.-based American Medical (AMMD: Research, Estimates) supplies medical devices to urologists that focus on incontinence, erectile dysfunction and prostate disease.
Lastly, molecular drug company Telnik Inc. remained nearly flat, edging up 1/16, or 0.8 percent, to close at 7-1/16. Telnik raised $35 million after pricing 5 million shares at $7, below its expected $9-to-$11 range, via lead underwriters Lehman Brothers.
Telnik (TELK: Research, Estimates) has a drug to treat major cancers in the trial phase.
High expectations
Analysts had pegged Equinix Inc., which builds facilities to house Internet businesses' equipment, to produce a strong return. However, the company ended up rising only 1-1/8, or 9 percent, to 13-1/8. Equinix priced 20 million shares at $12 each, the top of its expected range, via lead underwriters Goldman Sachs.
Led by Goldman Sach, Redwood City, Calif.-based Equinix (EQIX: Research, Estimates) raised $240 million.
Bowing out
Three companies chose to pull their planned deals. Intrinsix Corp. delayed its expected $40 million IPO. The company, which makes semiconductor devices, planned to price 4 million shares at $9-to-$11 each through CIBC World Markets. The proposed symbol was ITRX.
Consulting company Concours Group Inc. decided against its debut, postponing its sale of 2.5 million shares at $20-to-$22 each. Managed by lead underwriter Salomon Smith Barney, the company would have traded as CCGP.
Also bowing out was Dynacs Inc.'s $30 million offering. The company, which turns black and white film and television to color, planned to offer 3 million shares between $9 and $11 as DNAC. 
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