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Ikaria Inc., which makes a treatment for respiratory failure in newborns, cut the size of its planned initial public offering Wednesday.
According to a form filed Wednesday, Ikaria plans to sell 8 million shares of stock at an expected price of $12 to $13 per share. Previously, it planned to sell 10 million shares at between $15 and $17 per share. The Clinton, N.J., company said the underwriters of its IPO will have the option to buy another 1.2 million shares to cover overallotments, down from 1.5 million shares. The company's stock has been approved for listing on the Nasdaq Global Select market index under the symbol "IKAR."
Ikaria sells Inomax, a treatment for hypoxic respiratory failure that is associated with high blood pressure in infants. Inomax, or nitric oxide, is given at the patient's bedside through a ventilator. It dilates blood vessels to decrease the pressure inside them. The company said Inomax is the only approved therapy for hypoxic respiratory failure in newborns.
The company reported a profit of $7 million in the first three quarters of 2010, down from $15 million a year earlier. It said licensing payments and a new billing model were responsible for the smaller profit. In the first nine months of the year, its revenue grew 10 percent to $219 million.
Almost all of Ikaria's revenue comes from the U.S., although Inomax therapy is also approved in Canada, Australia, Mexico, and Japan.
The underwriters of the IPO include Goldman Sachs, Morgan Stanley, Credit Suisse, and Lazard Capital Markets.