Asthmatx sets $11 to $13 price for upcoming IPO

By Angela McDaniels

Seattle, Oct. 16 - Asthmatx, Inc. will offer 5 million shares of common stock in its upcoming initial public offering and talked the initial price at between $11.00 and $13.00 per share, according to an S-1/A report filed with the Securities and Exchange Commission on Friday.

The company originally filed for the IPO at an estimated size of $74.75 million in late July.

Piper Jaffray is the bookrunner with Bear, Stearns & Co. Inc. as joint lead. First Albany Capital and Jefferies & Co. are co-managers. They have been granted a greenshoe for 750,000 additional shares.

The Mountain View, Calif., medical device company is developing and working to commercialize an investigational procedure called Bronchial Thermoplasty, which delivers controlled thermal energy to the airways of adult asthma patients to reduce the mass of airway smooth muscle and therefore decrease the ability of the airways to constrict.

The procedure is performed using the company's Alair System, which includes a proprietary, single-use catheter, the Alair Catheter, and a radio frequency controller, the Alair RF Controller.

According to the filing, data from clinical trials of 150 asthma patients indicate that Bronchial Thermoplasty, when combined with conventional asthma medications, significantly improves the control of asthma symptoms in patients with moderate-to-severe asthma.

The company said it plans to use $20 million of IPO proceeds for clinical trials and development, $20 million for building commercial infrastructure and the remainder for general corporate purposes.

Asthmatx said it had a $9.85 million operating loss on grant revenue of $0.21 million for the six months ended June 30, compared with an operating loss of $3.58 million on grant revenue of $0.15 million for the first half of 2005.

Cash, cash equivalents and marketable securities were $25.68 million at June 30. The company projected that the figure will increase to $78.98 million after the IPO.

The company had 11,010,501 shares outstanding at Aug. 31. Brian E. Chee, a director and general partner of Polaris Ventures, is the largest shareholder with 21.2% of the equity, followed by entities affiliated with Menlo Ventures at 12.6% and Annette J. Campbell-White, a director and managing general partner of MedVenture Associates, at 11.8%.

The company's stock will be listed on the Nasdaq Global Market under the symbol "AZMA."

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