| Nanogen, Inc. | |||
| Ticker: | NGEN | 10398 Pacific Center Court | |
| Exchange: | NASDAQ-National Market | San Diego, CA 92121 | |
| Industry: | Manufacturing (SIC Code 3826) | (619) 546-7700 | |
| Type of Shares: | Common Shares | Filing Date: | 12/19/97 | |
| U.S. Shares: | 3,900,000 | Offer Date: | 4/13/98 | |
| Non-U.S. Shares: | 0 | Filing Price: | - | |
| Primary Shares: | 3,900,000 | Offer Price: | $11.00 | |
| Secondary Shares: | 0 | Gross Spread: | $0.77 | |
| Offering Amount: | Selling: | $0.42 | ||
| Expenses: | $900,000 | Reallowance: | $0.10 | |
| Shares Out After: | - |
| Manager | Tier | Phone |
| Morgan Stanley Dean Witter Discover & Co. | Lead Manager | (212) 761-5900 |
| Lehman Brothers Incorporated | Co-manager | (212) 526-8100 |
| SBC Warburg Dillon Read, Inc. | Co-manager |
| Issuer's Law Firm: | Pillsbury Madison & Sutro |
| Bank's Law Firm: | Wilson, Sonsini, Goodrich & Rosati |
| Auditor: | Ernst & Young |
| Registrar/Transfer Agent: | Norwest Bank of Minnesota |
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 | ||
| 12/31/96 | 9/30/97 | 9/30/96 | 9/30/97 | ||
| Revenue: | $1.64 | $1.58 | $1.16 | Assets: | $25.48 |
| Net Income: | -$7.78 | -$7.18 | -$5.73 | Curr Assets: | $22.88 |
| EPS: | -$0.58 | -$0.51 | Liabilities: | $3.32 | |
| Prior EPS: | -$7.40 | -$5.63 | Curr Liabilities: | $2.27 | |
| Cash Flow/Oper: | -$6.14 | $13.13 | $1.79 | Equity: | $22.16 |
| Cash Flow/Fin: | $18.71 | -$0.52 | -$0.05 | Cash: | $21.99 |
| Cash Flow/Inv: | -$0.11 | -$0.52 | Working Cap: | $20.62 | |
| Business Description |
| Nanogen, is the first company to integrate advanced microelectronics and molecular biology into a platform technology with broad commercial applications in the fields of medical diagnostics, biomedical research, genomics & drug discovery. Nanogen's fully automated system, which incorporates a proprietary semiconductor microchip, provides a flexible tool for the rapid identification and analysis of any test sample containing charged molecules. Through the use of microelectronics, the Company's technology enables the active movement and concentration of charged molecules to and from designated microlocations, or test sites, on the semiconductor microchip. This electronic concentration of molecules greatly accelerates molecular binding at each microlocation. In addition, Nanogen's technology allows the simultaneous analysis of multiple test results, or multiplexing, from a single sample. The open architecture design of the Nanogen system enables the Company to offer microchips with arrays designed and built by Nanogen for specific applications or with arrays that can be customized by the end user. The Company believes its technology will accelerate the development of products that capitalize on the increasing availability of genetic information and its relationship to human disease. The Company further believes its semiconductor based platform technology provides a low cost, highly efficient, accurate and versatile integrated system that will shift the paradigm from current manual and mechanical methods to microelectronic systems, thereby significantly improving the quality of healthcare. |
| Competition |
| As the Company develops applications for its technology, it expects to encounter intense competition from a number of companies that offer products in its targeted application areas. The Company anticipates that its competitors in these areas will include health care companies that manufacture laboratory-based tests and analyzers, diagnostic and pharmaceutical companies, as well as companies developing drug discovery technologies. To the extent the Company is successful in developing products in these areas, the Company will face competition from established companies and numerous development-stage companies that continually enter these markets. In many instances, the Company's competitors have substantially greater financial, technical, research and other resources and larger, more established marketing, sales, distribution and service organizations than the Company. Moreover, such competitors may offer broader product lines and have greater name recognition than the Company, and may offer discounts as a competitive tactic. In addition, several development stage companies are currently making or developing products that compete with or will compete with those of the Company. There can be no assurance that the Company's competitors will not succeed in developing or marketing technologies or products that are more effective or commercially attractive than the Company's current or future products, or that would render the Company's technologies and products obsolete. Also, there can be no assurance that the Company will have the financial resources, technical expertise or marketing, distribution or support capabilities to compete successfully in the future. The Company's future success will depend in large part on its ability to maintain a competitive position with respect to the technologies in which it competes. Rapid technological development by the Company or others may result in competing products or technology. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used to fund research and development, expansion of manufacturing operations and activities, expansion of sales and marketing activities, working capital and for general corporate purposes. |