Stock drop nixes AMI public offering
A secondary stock offering by MRI contrast developer AdvancedMagnetics was canceled due to a drop in the firm's share price,the company said earlier this month. Share prices of AdvancedMagnetics have fallen steadily this year, from $27.50 in earlyJanuary
A secondary stock offering by MRI contrast developer AdvancedMagnetics was canceled due to a drop in the firm's share price,the company said earlier this month. Share prices of AdvancedMagnetics have fallen steadily this year, from $27.50 in earlyJanuary to around $21 a share last week. Advanced Magnetics hadhoped to sell 1.35 million shares.
The Cambridge, MA, company also took a hit when it releasedsecond-quarter financial results last week. Advanced Magneticsposted a net loss for the quarter (end-March) of $2.4 millionon sales of $476,000, compared with net income of $3.3 millionand revenues of $6.2 million in the same period last year.
The company said that last year's quarterly revenues were higherdue to a $5 million licensing payment from Berlex Laboratoriesfor U.S. and Canadian rights to its Feridex IV liver agent. AdvancedMagnetics will receive another $5 million when Feridex receivesFood and Drug Administration approval. AMI received an approvableletter for Feridex earlier this year (SCAN 2/14/96).