Light Sciences Oncology sets IPO price talk at $14-$16 per share

By Jennifer Chiou

New York, Sept. 7 - Light Sciences Oncology, Inc. set price talk for its initial public offering at $14.00 to $16.00 per share for 5.25 million shares in an S-1/A filing with the Securities and Exchange Commission on Friday.

Cowen & Co. and Wachovia Securities are joint bookrunners, with Jefferies & Co. and Thomas Weisel Partners LLC as co-managers.

There is a greenshoe for 787,500 shares.

When first filed, the IPO was sized at $86.25 million.

Light Sciences Oncology is a development-stage life sciences company based in Snoqualmie, Wash., that is developing Light Infusion Therapy (Lit), a procedure in which a physician inserts a proprietary, flexible light-emitting diode array into a solid tumor through the skin and injects the patient with LS11 (talaporfin sodium), a light-activated, water-soluble drug. When the array is activated, the light energizes the LS11, which kills the tissue surrounding the array and shuts down tumor blood supply within that zone.

The company is focusing on three cancers for the initial development of Lit: hepatocellular carcinoma, a cancer of the liver; metastatic colorectal cancer; and glioma, a common form of brain tumor. Several clinical studies designed to demonstrate the safety and efficacy of Lit have been conducted to date, according to the filing.

IPO proceeds will be used to fund research and development, capital expenditures, working capital and general corporate purposes. If the opportunity arises, Light Sciences Oncology said it may use a portion of the proceeds to acquire or invest in a company with complementary products.

The company had 13,429,989 shares, or $63.7 million, of convertible preferred stock and no common stock outstanding at Dec. 31.

Craig M. Watjen is the largest shareholder with 43.6% of the preferred stock. He is a director of Light Sciences Corp., which is the second-largest shareholder with 36.7% of the preferred stock.

Light Sciences had a net loss of $8.59 million on no revenue for the year ended Dec. 31. Cash was $57.32 million at Dec. 31.

Research and development costs were $5.88 million for 2005.

The company has applied to list its common stock on the Nasdaq National Market under the symbol "LSON."

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