A trio of biotech IPOs priced in succession, but the public money appears to be flowing conservatively, some industry observers think.

Initial public offerings were priced by CancerVax Corp., which raised $72 million; Myogen Inc., which raised $70 million; and Genitope Corp., which raised $33.3 million. However, all three priced at the low end of their per-share ranges, though that could reflect, in part, recent profit taking among selling investors in general.

Nevertheless, there is an opening - though it will be more restrictive in terms of which companies pass muster and are allowed to enter the public markets.

"In my view, I think it's difficult to take these three specific new issuances and extrapolate what that could mean for the overall group," Jennifer Chao, analyst with RBC Capital Markets in New York, told BioWorld Today. "We are anticipating that there are going to be a number of new names that could be stepping out over the next one to two quarters, and they could price entirely differently than these three."

Indeed, more than a dozen biotech companies have lined up in the IPO queue since this summer. Two had priced - specialty pharmaceutical firm Advancis Pharmaceutical Corp. and diagnostic imaging business Acusphere Inc. Germantown, Md.-based Advancis raised $60 million, while Watertown, Mass.-based Acusphere garnered $52.5 million. Neurochem Inc., of Montreal, completed a $62.5 million IPO in the U.S. in September, but it was already publicly traded in Canada. (See BioWorld Today, Sept. 19, 2003; Oct. 9, 2003; and Oct. 20, 2003.)

There is a sense of caution among the already registered companies and those thinking of filing, as well as among investors. Earlier this week, Hopkinton, Mass.-based Aderis Pharmaceuticals Inc. postponed its IPO. (See BioWorld Today, Oct. 30, 2003.)

"I do think that coming into this IPO window, which will be markedly different from the last window we saw," Chao said, "investors are going to bring a significantly greater amount of skepticism and measuredness to the way they're assessing the pipeline potentials of these companies."

But she added that companies operating with niche expertise and a therapeutic product with demonstrated proof of principle will stand out.

"They are aware that investors are going to be much more skeptical and there will be a higher bar required to go public this cycle vs. prior cycles," Chao said. "And that's based on a change in investors' mindsets that companies are now being more and more valued on the fundamentals and not so much on the anticipation of positive outlook."

CancerVax Gains Funding For Lead Product

Carlsbad, Calif.-based CancerVax sold 6 million shares at $12 apiece, the same number of shares expected in the offering. The company, which received net proceeds of about $65.8 million, initially proposed a $115 million offering a day after raising $41 million in a third round of private equity financing. (See BioWorld Today, Aug. 15, 2003, and Aug. 18, 2003.)

Its lead candidate, Canvaxin, remains in Phase III trials in skin cancer patients. CancerVax is conducting two studies of the immunotherapy product for advanced-stage melanoma, an indication for which the product has received fast-track and orphan drug designation.

The company's pipeline also includes a research-stage lung cancer product, an anti-angiogenesis technology platform and preclinical human monoclonal antibodies that target various solid-tumor cancers.

New York-based Lehman Bros. Inc. acted as the IPO's lead underwriter, along with co-managers Citigroup Global Markets Inc., of New York; Thomas Weisel Partners LLC, of San Francisco; and U.S. Bancorp Piper Jaffray Inc., also of New York. CancerVax granted them a 30-day, 900,000-share overallotment option at the IPO price.

Its shares (NASDAQ:CNVX) stayed even to close at $12 in their first trading day.

Myogen Gets Through; Stock Closes Up

Denver-based Myogen sold 5 million shares at $14 apiece for $70 million, also the same number of shares expected to be sold. The company, which registered for the IPO concurrently with a $40 million Series D round of private financing, initially estimated it would raise $75 million. (See BioWorld Today, Aug. 29, 2003.)

Myogen said it expects the offering to close Nov. 4.

It markets a product in Europe, Perfan IV, an intravenous formulation of enoximone for acute decompensated heart failure. The company is developing enoximone capsules as well, with the product being evaluated in heart failure in three Phase III trials scheduled to be fully enrolled by the end of the year.

Myogen is developing another oral cardiovascular drug, ambrisentan, which recently completed a Phase II trial for pulmonary arterial hypertension. The company plans to begin Phase III trials of the ETA selective endothelin receptor antagonist in the first half of next year.

Myogen is developing another ETA selective endothelin receptor antagonist, ambrisentan, which it expects next year to move into a Phase IIb trial in patients with uncontrolled hypertension associated with moderate to severe chronic kidney disease.

The underwriting team included joint book-running managers Credit Suisse First Boston LLC and J.P. Morgan Securities Inc., both of New York, with co-management from fellow New York investment banking firms CIBC World Markets Corp. and Lazard Freres & Co. LLC. Myogen granted them a 750,000-share overallotment option.

Its stock (NASDAQ:MYOG) gained 90 cents to close at $14.90 in its initial trading day.

With Lead Product MyVax, Genitope Raises $33.3M

Redwood City, Calif.-based Genitope sold 3.7 million shares at $9 apiece, 900,000 shares fewer than estimated. The company initially registered for a proposed $68.8 million offering. (See BioWorld Today, Aug. 8, 2003.)

Genitope's lead candidate, MyVax personalized immunotherapy, is in a Phase III trial for B-cell non-Hodgkin's lymphoma. The injectable antibody also is in a Phase II study for the same indication, and Genitope plans to begin a Phase II trial next year in chronic lymphocytic leukemia.

San Francisco-based WR Hambrecht + Co. led the IPO's underwriting syndicate, with co-management from Punk, Ziegel & Co. LP and Brean Murray & Co. Inc., both of New York. Genitope granted them a 555,000-share overallotment option.

Its shares (NASDAQ:GTOP) gained $1 Thursday, or 11.1 percent, to close at $10 in their first trading day.