Biopure Corp. –

CAMBRIDGE, Mass. – Biopure Corp., an oxygen therapeutic development company, went public July 29, offering 3.5 million shares at $12 per share. The company’s stock priced at the low end of its $12 to $14 filing range.

J.P. Morgan & Co., Adams, Harkness & Hill Inc. and Robert W. Baird & Co. underwrote the initial public offering, which left 22.3 million shares outstanding.

OCM Principal Opportunities Fund, HTV Industries Inc., TVI Corp., Aspen Venture Partners, New Enterprise Associates, Zesiger Capital Group, Providence Partnership II, NEGF II, Schooner Capital, KBG Insurance NV, H&Q Capital Management Inc. and J.B. Partners provided venture backing. There were no selling shareholders.

Biopure offers two proprietary oxygen therapeutic products that are identical except for their molecular size distributions. The company defines its products as therapeutics because they remediate oxygen deprived tissues. Biopure has completed 19 clinical trials and 150 pre-clinical studies involving more than 400 humans and 1,500 animals from 10 species.

The company has not been profitable in recent years, losing $30 million in fiscal year 1998, $27.4 million in 1997 and $21.6 million in 1996.

Of the $37.9 million in estimated proceeds from the offering, Biopure will use $4.5 million to repay a principal amount of its loan from Pharmacia & Upjohn; $4 million to repurchase approximately 1.7 million shares of Class A common stock from a shareholder; and the balance for general corporate purposes.

Stephen Kaplan, a principal of Oaktree Capital Management, joined Biopure’s board of directors in November 1997.

Biopure – Selected Financial

(in thousands, except per share data)

Fiscal Year Ended October 31, Three Months Ended

1996 1997 1998 May 2, 1998 May 1, 1999

Revenue 71 – 1,131 214 1,545

Net income (loss) -21,594 -27,418 -30,047 -14,494 -15,222

Net income (loss) per share -1.77 -2.23 -2.41 -1.17 -1.23