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oy� THL:RSDAY, MARCH 18, 1996 Ski\T P\UL. PIONFER PRESS 3E 4J j INITIAL PUBLIC OFFERINGS V GalaGen ends first dq- v at offer price 1 The initial public offering gives writers said in February that they z" LEE EGERSTROM STAFF WRITER GalaGen a market value of $67 hoped to sell the stock for between million. But, as is the case with $11 and $13 a share. 4`1 GalaGen Inc., the biotechnology most biotechnology stocks, that Land O'Lakes, the dairy cooper- °' firm that is working on therapeu- value is based on investors' inter- ative that founded GalaGen and tic products for AIDS, cancer and est in the company's future, not houses it at its Arden Hills head- other immune system patients, immediate earnings. quarters, will retain about 23 per- 9A went public Wednesday by offer- The offering sought to raise at cent of GalaGen's outstanding ing 30 percent of its outstanding least $20 million to support Gala- shares. The rest of the shares are shares to raise about $20 million Gen's continuing research and owned by various private inves- to support its research and clinical clinical trials for its lead product, tors, investment banking or ven- trials. Sporidin-G, which has shown ture capital firms, and a Califor- More than 553,700 shares of promise in protecting AIDS and nia biotech company. a GalaGen's 2 million-share offer other immune disorder patients Sporidin-G is made from colos- traded on the national over-the- from life-threatening diarrhea. trum, the natural antibody-laden counter market. GalaGen's under- Tests on the product are under milk taken from dairy cows the writers priced the stock at $10 a way, and the U.S. Food and Drug first few days after they've given share, where it closed at day's Administration has recognized it birth. Dairy farmer members of end. as an "orphan drug," meaning that Land O'Lakes will supply GalaGen Investors bid the stock up to GalaGen could have exclusive with the colostrum. $10.75 as it began trading, but it rights to it for at least seven Sporidin-G attempts to help quickly sank on a weak opening years AIDS and cancer patients receiv- market to the $10 offer price and Montgomery Securities heads an ing chemotherapy treatments by .bounced between $10 and $10.50 underwriting group offering the building passive immunity to bar- during trading. stock. The company and under- teria, parasites, fungi and viruses.