IPOs IN REGISTRATION – Tularik Inc. –

SAN FRANCISCO – Tularik Inc., a pharmaceutical company, went public December 10, offering 6.95 million shares at $14 apiece. The company’s stock priced above its $11 to $13 filing range.

Underwritten by Lehman Brothers Holdings Inc., Hambrecht & Quist Group, J.P. Morgan & Co. and Warburg Dillon Read LLC, the initial public offering left 42.2 million shares outstandings.

There were no selling shareholders. Venture backers included Pharma Vision 2000 AG and the Mayfield Fund.

The company develops oral drugs that use gene regulation to treat conditions such as diabetes, cancers, cytomegalovirus, obesity and inflammatory diseases, as well as antibacterial agents.

The $68.2 million in proceeds expected from the IPO will be used for research and development and for other general purposes. In addition, the company may use a portion of the proceeds for the possible acquisition of complementary businesses, products and technologies.

Tularik has never generated a profit, losing $25.4 million in 1997 and $10.5 million in 1998.

A. Grant Heidrich, a general partner at Mayfield, joined the company’s board of directors in November 1991.


Tularik – Selected Financial

(in thousands, except per share data)

Year Ended December 31 Nine Months Ended September 30

1994 1995 1996 1997 1998 1998 1999

Total revenue 5,618 11,124 15,297 20,009 21,362 13,664 17,856

Net loss -5,898 -3,607 -5,480 -25,374 -10,539 -9,303 -18,954

Net loss per share -2.27 -0.91 -1.09 -4.19 -1.55 -1.4 -2.57