Zentaris IPO could be worth $213 million

Germany's Degussa AG has priced the initial public offering of itsbiotechnology unit Zentaris at 11-14 euros each, which gives the latter a value of 198-252 million euros ($167.5-$213.2 million). The offering is part of Degussa's strategy to concentrate on its core chemicals business (Marketletter April 23), although the firm will retain 32% of Zentaris. 61% of the latter's shares will be offered publicly and the remainder has already been earmarked for two unnamed investors. Zentaris is due to list on the Frankfurt Stock Exchange on June 18.

In the black in 2004?

Zentaris plans to invest 50% of its proceeds from the IPO in product development, and noted that it has eight products in clinical trials, including miltefosine for the treatment of visceral leishmaniasis. In the first quarter of 2001, Zentaris had sales of 3.5 million euros, up from 0.2 million euros a year earlier, while operating loss narrowed 37.5% to 5 million euros. Zentaris is expected to break even in 2004.