| Corixa Corporation | |||
| Ticker: | CRXA | 1124 Columbia Street, Suite 200 | |
| Exchange: | NASDAQ-National Market | Seattle, WA 98104 | |
| Industry: | Manufacturing (SIC Code 2836) | (206) 667-5711 | |
| # of Employees: | 82 | ||
| Type of Shares: | Common Shares | Filing Date: | 7/25/97 | |
| U.S. Shares: | 3,000,000 | Offer Date: | 10/1/97 | |
| Non-U.S. Shares: | 0 | Filing Range: | $12.00 - $14.00 | |
| Primary Shares: | 3,000,000 | Offer Price: | $13.00 | |
| Secondary Shares: | 0 | Gross Spread: | $0.91 | |
| Offering Amount: | $39,000,000 | Selling: | $0.53 | |
| Expenses: | $800,000 | Reallowance: | $0.10 | |
| Shares Out After: | 10,994,331 |
| Manager | Tier | Phone |
| Lehman Brothers Incorporated | Lead Manager | (212) 526-8100 |
| Invemed Associates Inc. | Co-manager | (212) 421-2500 |
| Vector Securities International, Inc. | Co-manager | (800) 546-1231 |
| Issuer's Law Firm: | Venture Law Group |
| Bank's Law Firm: | Cooley Godward Castro Huddleson & Tatum |
| Auditor: | Ernst & Young |
| Registrar/Transfer Agent: | Harris Trust Company |
Dollar amounts in U.S. millions except for per share data | |||||
| 6 Month Ending Financials | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 12/31/96 | 6/30/97 | 6/30/96 | 6/30/97 | ||
| Revenue: | $5.80 | $6.94 | $2.02 | Assets: | $20.03 |
| Net Income: | -$4.15 | $0.16 | -$2.40 | Curr Assets: | $15.87 |
| EPS: | -$0.50 | $0.02 | Liabilities: | $8.16 | |
| Prior EPS: | $0.73 | -$1.83 | Curr Liabilities: | $3.07 | |
| Cash Flow/Oper: | -$6.73 | $2.67 | $4.82 | Equity: | $11.87 |
| Cash Flow/Fin: | $19.49 | -$5.19 | -$4.99 | Cash: | $15.05 |
| Cash Flow/Inv: | -$10.67 | -$5.19 | Working Cap: | $12.80 | |
| Business Description |
| The company is focused on the discovery and early clinical development of vaccine products that induce specific and potent pathogen or tumor reative T lymphocyte responses for the treatment and prevention of cancers and certain infectious diseases. The Company employs the following three proprietary core technology platforms, which together comprise the elements the Company believes are necessary for effective T cell vaccines: (i) microsphere delivery systems that specifically activate appropriate T cell responses; (ii) adjuvants that specifically enhance appropriate T cell responses; and (iii) disease-specific antigens that are essential to elicit appropriate T cell responses.Corixa believes this research- and partner-driven approach creates significant scientific, operational and financial advantages for the Company and accelerates the commercial development of new therapeutic and prophylactic T cell vaccines, as well as related diagnostic products. The Company has entered into corporate partnerships with nine pharmaceutical, biotechnology and diagnostic companies, including SmithKline Beecham Biologicals S.A. ("SmithKline Beecham"), Pasteur Merieux Connaught, a subsidiary of Rhone-Poulenc Group ("PMC") and Abbott Laboratories ("Abbott"). |
| Competition |
| The biotechnology and biopharmaceutical industries are characterized by rapidly advancing technologies, intense competition and a strong emphasis on proprietary products. Many entities, including pharmaceutical and biotechnology companies, academic institutions and other research organizations are actively engaged in the discovery, research and development of products that could compete directly with products the company is seeking to develop. Many companies are also developing alternative therapies to treat cancer and infectious disease and, in this regard, are competitive with the company. Many of the entities developing and marketing such competing products have significantly greater financial resources and expertise in research and development, manufacturing, preclinical testing, conducting clinical trials, obtaining regulatory approvals and marketing than the company. In addition, many of these competitors have become more active in seeking patent protection and licensing arrangements in anticipation of collecting royalties for use of technology that they have developed. Smaller companies may also prove to be significant competitors, particularly through collaborative arrangements with large and established companies. These companies and institutions compete with the company in recruiting and retaining qualified scientific and management personnel, as well as in acquiring technologies complementary to the company's programs. The company's ability to compete effectively will depend on its ability to advance its core technologies, license additional technology, maintain a proprietary position in its technologies and products, obtain required government and other public and private approvals on a timely basis, attract and retain key personnel and enter into corporate partnerships that enable the company and its corporate partners to develop effective products that can be manufactured cost-effectively and marketed successfully. The company expects that competition among products approved for sale will be based, among other things, on efficacy, reliability, product safety, price and patent position. There can be no assurance that competitors will not develop more effective or more affordable products, or achieve earlier patent protection or product commercialization than the company or that such products will not render the company's products obsolete. |
| Business Plan |
| The company's objective is to be the leader in the discovery and commercialization of T cell vaccine products for the treatment and prevention of cancers and certain diseases. Principal elements of the company's strategy are as follows: (I) Integrate the company's Core Technologies, (ii) Establish Corporate Partnerships at an Early Stage and (iii) Partner Discrete Core Technologies and Non-Vaccine Products. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used for research and development and for working capital and general corporate purposes. |
| Name of Shareholder | % Owned Before | % Owned After |
| Entities affiliated with Kleiner Perkins Caufield & Byers | 29.90% | 22.40% |
| Entities affiliated with Enterprise Partners | 18.00% | 13.50% |
| Entities affiliated with InterWest Investors | 16.90% | 12.70% |
| Entities affiliated with Forward Ventures | 7.70% | 5.80% |
| S.R. One, Limited | 6.10% | 4.60% |
| Entities affiliated with Olympic Venture Partners | 5.00% | 3.70% |
| Officer Name | Title | Age |
| Joseph S. Lacob | Chairman of the Board of Directors | 41 |
| Mark McDade | Executive Vice President , Chief Operating Officer and Director | 42 |
| Steven Reed, Ph.D. | Executive Vice President and Chief Scientific Officer | 46 |
| Steven Gillis, Ph.D. | President, Chief Executive Officer and Director | 44 |
| Kenneth Grabstein, Ph.D. | Vice President and Director of Immunology | 46 |
| Syamal Raychaudhuri, Ph.D. | Vice President and Director of Vaccine Research | 43 |
| Michelle Burris | Vice President of Finance and Administration | 31 |