They're Holding This Biotech Baby

Here's the familiar pattern for hot new offerings: Trading starts, and the stock shoots up. The underwriter issues a "booster-shot" research report. As the stock continues to fly, the venture capitalists (VCs) bail out. By that yardstick, Creative Biomolecules (CBMI) is unusual: It went public at 7 a share in 1993 and climbed to 11, but big VC groups stayed put--and bought more in the post-IPO period. When the stock reversed course and fell to 3 in mid-1994 in the Street's retreat from biotechs, VCs upped their buying. It has since rallied, closing at 83/8 on Jan. 16.

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