Prometheus Laboratories Plans IPO
NEW YORK – 12.19.07 – Prometheus Laboratories Inc., which is developing diagnostic tests and drugs to help doctors individualize patient care, plans an initial public offering of common stock, according to a Securities and Exchange Commission filing Wednesday.
The San Diego-based company did not disclose the expected size or price range of the IPO, but indicated the offering price may total up to $100 million. Prometheus noted the total offering price was estimated solely to calculate its registration fee and may change.
Prometheus’ strategy includes integrating prescription drugs and diagnostic testing to provide doctors with a comprehensive service. The company is focused on detecting, diagnosing and treating gastrointestinal diseases and disorders.
For the nine months ended Sept. 30, Prometheus’s earnings fell to $9.6 million, from $22.6 million in the first nine months of 2006. During the same period, the company’s revenue rose to $165.1 million, from $132.9 million.
Prometheus’ leading pharmaceutical product, Entocort EC capsules, accounted for more than half of revenue. Prometheus markets the Crohn’s disease treatment in the U.S. under an exclusive agreement with AstraZeneca PLC (nyse: AZN – news – people ) that expires at the end of 2010.
An additional 33 percent of sales were derived from the company’s three leading diagnostic product groups.
Prometheus plans to use proceeds from the IPO for working capital and general corporate purposes, which include licensing and acquisition opportunities, research and development, sales and marketing and capital expenditures.
President and Chief Executive Joseph M. Limber also serves as chief financial officer and as a director. Previously, Limber was a consultant and interim CEO for Deltagen Inc., a provider of drug discovery tools and services to the biopharmaceutical industry. He has also served as CEO of Aclara BioSciences Inc., now Monogram Biosciences (nasdaq: MGRM – news – people ) Inc., a developer of technologies and systems for life science research.
Goldman Sachs (nyse: GS – news – people ) and Credit Suisse Securities are serving as the IPO’s lead underwriters. Banc of America Securities, Cowen and Co. and Pacific Growth Equities are also underwriting the IPO.