| IPO Company Profile |
| Current Quote | News | SEC Filings | Peer IPO Companies |
| CombiChem, Inc. |
| 9050 Camino Sante Fe, San Diego, CA 92121 * (619) 530-0484 |
| The company is a computational drug discovery company that is applying its proprietary design technology and rapid synthesis capabilities to accelerate the discovery process for new drugs. |
| Manager | Tier | Phone |
| BancAmerica Robertson Stephens | Lead Manager | (415) 989-8500 |
| Donaldson, Lufkin & Jenrette Securities Corp. | Co-manager | (212) 371-0641 |
| Salomon Smith Barney | Co-manager | (212) 723-7300 |
| NASNTL: | CCHM | Service: | SIC 8731 | |
| Type of Shares: | Common Shares | Filing Date: | 10/15/97 | |
| U.S. Shares: | 2,250,000 | Offer Date: | 5/7/98 | |
| Non-U.S. Shares: | 0 | Filing Range: | $8.00 - $10.00 | |
| Primary Shares: | 2,250,000 | Offer Price: | $8.00 | |
| Secondary Shares: | 0 | Gross Spread: | $0.56 | |
| Offering Amount: | $20,250,000 | Selling: | $0.32 | |
| Expenses: | $700,000 | Reallowance: | $0.10 | |
| Post-IPO Shares: | 13,168,505 | |||
| Employees: | 56 |
| Issuer's Law Firm: | Brobeck, Phleger & Harrison |
| Bank's Law Firm: | Cooley Godward Castro Huddleson & Tatum |
| Registrar/Transfer Agent: | American Stock Transfer & Trust Co |
| Auditor: | Ernst & Young |
Dollar amounts in U.S. millions except for per share data | |||||
| 9 Month Ending Financials | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Audited Income | Balance Sheet | ||
| 12/31/96 | 9/30/97 | 9/30/96 | 9/30/97 | ||
| Revenue: | $2.97 | $4.60 | $1.07 | Assets: | $13.36 |
| Net Income: | -$5.12 | -$3.67 | -$4.46 | Curr Assets: | $8.92 |
| EPS: | -$0.66 | -$0.45 | Liabilities: | $29.22 | |
| Prior EPS: | Curr Liab: | $3.63 | |||
| Cash Flow/Oper: | -$2.37 | -$3.73 | -$4.40 | Equity: | -$15.85 |
| Cash Flow/Fin: | $12.18 | -$0.16 | $2.55 | Cash: | $8.40 |
| Cash Flow/Inv: | -$12.57 | $7.81 | -$0.31 | Working Cap: | $5.29 |
| Competition |
| Many organizations are actively attempting to identify, optimize and generate lead compounds for potential pharmaceutical development. The Company competes with the research departments of pharmaceutical companies, biotechnology companies, combinatorial chemistry companies and research and academic institutions as well as other computationally based drug discovery companies. Many of these competitors have greater financial and human resources and more experience in research and development than the Company. Historically, large pharmaceutical companies have maintained close control over their research activities, including the synthesis, screening and optimization of chemical compounds. Many of these companies, which represent one of the largest potential markets for CombiChem's products and services, are internally developing combinatorial and computational approaches and other methodologies to improve productivity, including major investments in robotics technology to permit the automated parallel synthesis of compounds. In addition, these companies may already have large collections of compounds previously synthesized or ordered from chemical supply catalogs or other sources against which they may screen new targets. Other sources of compounds include compounds extracted from natural products, such as plants and microorganisms, and compounds created using rational drug design. Academic institutions, governmental agencies and other research organizations are also conducting research in areas in which the Company is working, either on their own or through collaborative efforts. The Company anticipates that it will face increased competition in the future as new companies enter the market and advanced technologies become available. The Company's processes may be rendered obsolete or uneconomical by technological advances or entirely different approaches developed by one or more of the Company's competitors. The existing approaches of the Company's competitors or new approaches or technology developed by the Company's competitors may be more effective than those developed by the Company. |
| Business Plan |
| The Company's objective is to be the industry leader in the generation, evolution and optimization of novel lead candidates. The Company intends to utilize its scientific and technology assets in the discovery process through a mix of collaborative and internal programs by applying the following business strategies: (I) To establish multiple collaborations with large pharmaceutical and biotechnology companies focused on biological targets chosen by the collaborators, (ii) To partner with companies to apply discovery technologies to jointly agreed-upon biological targets, (iii) To conduct internal discovery efforts aimed at selected biological targets, retaining a larger economic interest in the subsequently outlicensed lead candidates, (iv) To expand collaborative opportunities in alternative industries such as the agrochemical field and (v) To maintain technology leadership in both software development and rapid synthesis capbilities. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used to fund research and development, expansion of laboratory and office facilities, working capital and for general corporate purposes. |
| Name of Shareholder | % Owned Before | % Owned After |
| Sprout Capital VII, L.P. and affiliated entities | 0.14 | 0.11 |
| Philippe O. Chambon, MD., Ph.D. | 0.14 | 0.11 |
| Sequoia Captial VI and affiliated entities | 0.11 | 0.09 |
| Pierre R. Lamond | 0.11 | 0.09 |
| Elan International Services Ltd. | 0.09 | 0.08 |
| Brinson MAP Venture Capital Fund III and affiliated entities | 0.09 | 0.07 |
| Sorrento Growth Partners I, L.P. and affiliated entities | 0.07 | 0.06 |
| Vicente Anido, Jr., Ph.D. | 0.05 | 0.04 |
| Officer Name | Title | Age |
| Pierre R. Lamond | Chairman of the Board and Director | 67 |
| Vicente Anido, Jr., Ph.D. | President, Chief Executive Officer and Director | 44 |
| Steven L. Teig | Vice President, Advanced Technology | 36 |
| Peter L. Myers, Ph.D. | Vice President, Chief Scientific Officer, Chief Operating Officer and Director | 53 |
| Karin Eastham | Vice President, Finance and Administration and Chief Financial Officer | 47 |
| John Saunders, Ph.D. | Vice President, Medicinal Chemistry | 49 |
| Klaus Gubernator, Ph.D. | Vice President, Special Projects | 44 |
| Lee R. McCracken | Vicel President, Business Development | 39 |