Omrix Pharmaceuticals files for $80.5 million IPO

By Ted A. Knutson

Washington, Jan. 18 - Omrix Pharmaceuticals Inc. filed for an $80.5 million gross initial public offering of stock in an S-1 registration with the Securities and Exchange Commission.

UBS Investment Bank is the bookrunning manager. CIBC World Markets is the co-lead manager. Co-managers are Leerink Swann & Co. and Oppenheimer & Co.

The New York-based company develops and markets biosurgical and passive immunotherapy products.

The company said its biosurgical product line includes products and product candidates that are used or are intended to be used for the control of bleeding, or hemostasis, and other surgical applications. The products compete in the advanced biosurgical hemostats market, which Omrix believes is the fastest growing segment of the surgical sealant market.

The firm places the advanced biosurgical hemostats market in the United States at $275 million of the worldwide $1 billion surgical sealant market. And Omrix expects these markets to grow substantially.

Omrix added its passive immunotherapy product line includes antibody-rich products and product candidates for the treatment of immune deficiencies and infectious diseases, including potential biodefense applications.

The passive immunotherapy products are for the treatment of patients with immune deficiencies and smallpox vaccine-related complications, and for the prevention of reinfection of transplanted livers in liver transplant patients with hepatitis B virus.

The company had an operating loss of $2.82 million on sales of $16.02 million for the first nine months of 2005 against an operating loss of $4.64 million on revenues of $12.45 million for the same period in 2004.

As of Sept. 30, Omrix reported $6.04 million in cash and cash equivalents.

Omrix president and chief executive officer Robert Taub is the largest shareholder with 9.6 million shares for 32.1% of the pre-IPO total. MPM BioVentures I LLC is second with 8.6 million for 29.5% of the total.

Proceeds of the stock offering will be used to expand manufacturing capabilities, to fund a plan to penetrate the market for biosurgical products in Japan and other countries and for general corporate purposes.

Omrix has applied to have its common stock included for quotation on the Nasdaq National Market under the symbol "OMRI."

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