IPOs IN REGISTRATION – Maxygen Inc. –

REDWOOD CITY, Calif. – Maxygen Inc., a genetic engineering company, went public December 16, offering 6 million shares at $16 apiece. The company’s stock priced above its $13 to $15 filing range.

Goldman, Sachs & Co., BancBoston Robertson Stephens and Invemed Associates underwrote the initial public offering, which left 29.9 million shares outstanding.

Affymax Technologies N.V. and Technogen Managers LLC were venture backers. There were no selling shareholders.

The company uses its proprietary recombination technology and screening systems to develop genes for commercial use. Its MolecularBreeding technology combines biotechnological advances with traditional breeding techniques, mimicking natural evolution processes to make products for vaccines, genetically engineered crops, and new energy sources.

The $88.3 million in proceeds expected from the IPO will be used for research and development and for general corporate purposes, including working capital and capital expenditures.

Maxygen has never been profitable, losing $4 million in 1997 and $8.8 million in 1998.

Isaac Stein, a member at Technogen, joined the company’s board in June 1998. Gordon Ringold, chief executive officer and scientific director at Affymax, joined the board in September 1997.

Maxygen – Selected Financial

(in thousands, except per share data)

Year Ended December 31 Nine Months Ended September 30

1997 1998 1998 1999

Total revenue 341 2,723 1,819 9,693

Net loss -4,033 -8,826 -5,648 -6,754

Net loss per share -0.82 -1.31 -1.54 -1.15