Israeli biotechnology company Rosetta Genomics Ltd. has resumed its plans to float on Nasdaq, but has lowered the asking price for its stock to $7.50 - 8.50 per share from the original range of $11-13. The company will attempt to raise almost the same amount in the IPO ($28-31 million instead of $33-36 million) but at value of $75-83 million, instead of the $116-137 million it originally hoped to raise.
Rosetta could have closed the IPO back in October, but its shareholders disregarded the underwriters’ advice to compromise on the price and valuation for the float, which was eventually called off, even though no official announcement to that effect was ever made.
Rosetta has developed a technology that can identify the activity of microRNA gene sequences that affect gene expression inside the human body. It is considered a pioneer in this promising industry and has aroused tremendous interest, although its products are still at the initial development stage and are not yet ready for clinical trials on human subjects.
Rosetta engages in both drug development (with products requiring more than 10 years development before they can brought onto the market), and diagnostic products (which require 3-4 years development but whose market is smaller. The company has joint R&D agreements with Isis Pharmaceuticals Inc. (Nasdaq: ISIS), Ambion, and Asuragen Inc..
Published by Globes [online], Israel business news - www.globes.co.il - on January 25, 2007
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