Biosite Diagnostics Incorporated
Ticker:BSTE 11030 Roselle Street
Exchange:NASDAQ-National Market San Diego, CA 92121
Industry:Manufacturing (SIC Code 3826) (619) 455-4808

Offering Information
Type of Shares:Common Shares Filing Date:12/11/96
U.S. Shares:2,400,000 Offer Date:2/12/97
Non-U.S. Shares:0 Filing Range:$11.00 - $13.00
Primary Shares:2,400,000 Offer Price:$12.00
Secondary Shares:0 Gross Spread:$0.84
Offering Amount: $28,800,000 Selling:$0.47
Expenses:$700,000 Reallowance:$0.10
Shares Out After:11,885,168

Primary Underwriting Group
ManagerTierPhone
Cowen & CompanyLead Manager (212) 495-6000
Alex. Brown & Sons IncorporatedCo-manager (410) 895-2700

Legal Counsel, Auditor and Registrar
Issuer's Law Firm: Pillsbury Madison & Sutro
Bank's Law Firm: Cooley Godward Castro Huddleson & Tatum

Selected Financial Data

Dollar amounts in U.S. millions except for per share data
9 Month Ending Financials
Full Year
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/31/95 9/30/96 9/30/95 9/30/96
Revenue:$25.15$20.23$18.24Assets:$28.97
Net Income:$7.91$2.61$5.03Curr Assets:
EPS:$0.74$0.24$0.47Liabilities:$7.79
Prior EPS:$0.22Curr Liabilities:
Cash Flow/Oper:Equity:$21.18
Cash Flow/Fin:Cash:
Cash Flow/Inv:

Business Description
The company develops, manufactures and markets rapid, accurate and cost effective diagnostic products that improve the quality of patient care and simplify the practice of laboratory medicine. The company believes that its Immediate Response Diagnostics can have an important impact on medical decisions, patient care and the cost of medical treatment. The company's first product, Triage Panel for Drugs of Abuse, a small self-contained test capable of detecting a broad spectrum of commonly overdosed prescription and illicit drugs in approximately 10 minutes, is used by over 2,600 hospitals and emergency departments. The company's Immediate Response Diagnostics technology is based on proprietary advances in several core scientific and engineering disciplines, including antibody development and engineering, analyte cloning and synthesis, signaling chemistry and micro capillary fluidics, which make possible the development and manufacture of rapid, accurate and cost-effective point-of-care diagnostics.

Competition
The market in which the company competes is intensely competitive. Biosite's competitors include health care companies that manufacture laboratory-based tests and analyzers, as well as clinical and hospital-based laboratories. Currently, the majority of diagnostic tests used by physicians and other health care providers are performed by independent clinical and hospital based laboratories. The company expects that these laboratories will compete vigorously to maintain their dominance of the testing market.

Business Plan
The company markets its Triage DOA to hospital laboratories and emergency departments in the United States through CMS, a laboratory products distributor, and in certain countries in Europe, Latin America, the Middle East, Asia and Africa through Merck. The company anticipates it may directly market in the United States its cardiac, microbiology and therapeutic drug monitoring products under development.

Use of Proceeds
The proceeds from the proposed offering will be used for expansion of sales and marketing activities, research and development, expansion and development of manufacturing capabilities, working capital and general corporate purposes.

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