Omrix Biopharmaceuticals sets IPO price target at $15 to $17

New York, March 24 - Omrix Biopharmaceuticals, Inc. set the price target for its planned initial public offering of common stock at $15.00 to $17.00 per share.

The company also said it will sell 3,437,500 shares in the transaction for a total size of $55 million, according to an S-1/A filing with the Securities and Exchange Commission. There is a greenshoe for 515,625 shares.

At the midpoint, net proceeds will be $49 million.

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 using its protein purification technology.

The company said its biosurgical product line includes products and product candidates 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 quoted a report it commissioned from Easton Associates, LLC as putting the active biosurgical hemostats market in the United States at $275 million of the worldwide $500 million surgical sealant market. Omrix expects these markets to grow substantially.

Omrix added that 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 $2.19 million on sales of $22.48 million plus grants of $5.02 million for 2005 against an operating loss of $5.36 million on revenues of $17.57 million plus grants of $2.38 million for 2004. The net loss for 2005 was $27.71 million compared to $6.60 million in 2004.

As of Dec. 31, Omrix reported $6.49 million in cash and cash equivalents.

Omrix president and chief executive officer Robert Taub is the largest shareholder with 3.5 million shares for 32.1% of the pre-IPO total. MPM BioVentures I LLC is second with 3.2 million for 29.4% 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, to repay debt 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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