What Has This Biotech Pumping?

When Cardiovascular Imaging Systems went public in mid-May, it had to do a double- cut: It slashed the planned offering price from a wide 13-to-15 range all the way down to 7 a share. And it reduced the offered shares from 2 million to 1.5 million. "That was the only way to get the deal done," says one fund manager, "because the biotechs were under tremendous pressure." Yet the stock rose to 9 a few weeks after the offering and is now trading at 8 1/2.

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