IPO Company Profile
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Collateral Therapeutics, Inc.
9360 Towne Centre Drive, San Diego, CA 92121 * (619) 824-6500

The company is focused on the discovery, development and commercialization of non-surgical gene therapy products for the treatment of cardiovascular diseases, including coronary artery disease, peripheral vascular disease and congestive heart failure.

Primary Underwriting Group
ManagerTierPhone
Bear, Stearns & Co. Inc.Lead Manager (212) 272-4850
Raymond James & Associates, Inc.Co-manager (813) 573-8108
Vector Securities International, Inc.Co-manager (800) 546-1231

Offering Information
NASNTL:CLTX Service: SIC 8731
Type of Shares:Common Shares Filing Date:4/24/98
U.S. Shares:2,200,000 Offer Date:7/2/98
Non-U.S. Shares:0 Filing Range:$11.00 - $13.00
Primary Shares:2,200,000 Offer Price:$7.25
Secondary Shares:0 Gross Spread:$0.51
Offering Amount: $26,400,000 Selling:$0.30
Expenses: - Reallowance:$0.10
Post-IPO Shares:11,622,573
Employees:27

Legal Counsel, Auditor and Registrar
Issuer's Law Firm: Brobeck, Phleger & Harrison
Bank's Law Firm: Coudert Brothers
Registrar/Transfer Agent: American Stock Transfer & Trust Co
Auditor: Ernst & Young

Selected Financial Data

Dollar amounts in U.S. millions except for per share data
3 Month Ending Financials
Full Year
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/31/97 3/31/98 3/31/97 3/31/98
Revenue:$0.00$0.00$0.00Assets:$7.36
Net Income:-$0.98-$0.98-$0.62Curr Assets:$6.73
EPS:-$0.16-$0.13Liabilities:$1.44
Prior EPS:$0.37-$0.44Curr Liab:$0.94
Cash Flow/Oper:$2.55Equity:$5.92
Cash Flow/Fin:$6.07-$0.30-$0.23Cash:$5.68
Cash Flow/Inv:-$0.35Working Cap:$5.79

Competition
The Company is aware of a number of companies and institutions that are developing or considering the development of potential gene therapy, cell therapy treatments and angiogenic protein infusion therapies, including early-stage gene therapy companies, fully integrated pharmaceutical companies, universities, research institutions, governmental agencies and other healthcare providers. Additionally, there are a number of medical device companies which are developing innovative surgical procedures including: (i) laser-based systems to perform transmyocardial revascularization to stimulate coronary angiogenesis and (ii) companies developing surgical devices and systems to perform minimally invasive cardiothoracic surgery to replace traditional mechanical revascularization techniques, such as coronary bypass surgery, and less invasive procedures such as catheter-based treatments, including angioplasty, atherectomy and coronary stenting. In addition, the Company's potential products will be required to compete with existing pharmaceutical products, or products developed in the future, that are based on established technologies. Many of the Company's competitors have substantially more financial and other resources, larger research and development staffs and more experience and capability in researching, developing and testing products in clinical trials, in obtaining FDA and other regulatory approvals and in manufacturing, marketing and distribution than the Company. In addition, the competitive positions of other early-stage companies may be enhanced significantly through their collaborative arrangements with large pharmaceutical companies or academic institutions.

Business Plan
The Company's objective is to become the leader in the development and commercialization of non-surgical cardiovascular gene therapy products for sale to worldwide markets. The key elements of the Company's strategy are as follows: (I) Develop a New Paradigm For the Treatment of Cardiovascular Diseases, (ii) Maintain Leadership in Cardiovascular Gene Therapy, (iii) Expand, Enhance and Protect Proprietary Positions and (iv) Establish Strategic Collaborations to Enhance Product Development and Commercialization.

Use of Proceeds
The proceeds from the proposed offering will be used for capital expenditures, for research and development, acquisition of technology, working capital and general corporate purposes.

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