NEW YORK, Nov. 22 /PRNewswire/ -- Merrill Lynch, Pierce, Fenner & Smith
Incorporated today announced the launch of Biotech HOLDRs(SM), a new security
representing undivided beneficial ownership interest in the common stock of 20
specified companies involved in various segments of the biotechnology
industry.
Today, 4.5 million Biotech HOLDRs were priced for initial sale to the
public at an aggregate offering price in excess of $490 million. Trading of
Biotech HOLDRs begins on Tuesday, November 23, 1999, on the American Stock
Exchange under the symbol "BBH." Newly issued Biotech HOLDRs will be
available on a continuous basis.
"Investors have embraced the HOLDRs investment platform," said Steve
Bodurtha, First Vice President and Senior Director of Merrill Lynch's
Customized Investments Group. "With Biotech HOLDRs, investors now have a
flexible, cost-effective way to diversify their investment in the
biotechnology industry at costs that may be lower than investing through other
vehicles."
Biotech HOLDRs are Merrill Lynch's second offering from their new,
innovative HOLDRs(SM) investment platform. Two months ago Merrill Lynch
introduced Internet HOLDRs (Amex: HHH), the first registered U.S. security to
represent investors' undivided ownership rights in other U.S. securities.
Approximately 3.7 million Internet HOLDRs were issued by Merrill Lynch on
September 22, 1999 at a price of $108 1/4. Since its launch just two months
ago, over 2.8 million additional Internet HOLDRs shares have been issued to
investors. Today, more than 6.5 million Internet HOLDRs are outstanding and
represent an aggregate market value in excess of $935 million. Like Internet
HOLDRs, Biotech HOLDRs can only be traded, issued and cancelled in round-lots
of 100 shares.
Biotech HOLDRs are depositary receipts issued by the Biotech HOLDRs Trust,
for which The Bank of New York acts as Trustee. Unlike a mutual fund or UIT,
Biotech HOLDRs represent an investor's undivided beneficial ownership interest
in 20 of the largest and most liquid companies in the biotechnology industry
measured by market capitalization and trading volume.
In July of 1998 Merrill Lynch launched its first HOLDRs product, Telebras
HOLDRs (NYSE: TBH), with an initial market capitalization of more than
$4.68 billion. Telebras HOLDRs represent investors' interests in 12 separate
American Depositary Receipts. Since its inception, TBH has traded on average
almost 1.7 million shares per day.
The specific share amounts underlying each round-lot of 100 Biotech HOLDRs
are set forth in the chart below. The share amounts set forth below should
not change except for changes due to corporate events such as stock splits or
reverse splits on the underlying securities or reconstitution events.
Company Symbol Share
Amounts
Amgen Inc. AMGN 46
Genentech, Inc. DNA 22
Biogen, Inc. BGEN 13
Immunex Corporation IMNX 14
PE Corp-PE Biosystems Group PEB 9
MedImmune, Inc. MEDI 5
Chiron Corporation CHIR 16
Genzyme Corporation GENZ 7
Gilead Sciences, Inc. GILD 4
Sepracor Inc. SEPR 3
IDEC Pharmaceuticals Corporation IDPH 2
QLT PhotoTherapeutics Inc. QLTI 5
Millennium Pharmaceuticals, Inc. MLNM 3
BioChem Pharma Inc. BCHE 9
Affymetrix, Inc. AFFX 2
Human Genome Sciences, Inc. HGSI 2
ICOS Corporation ICOS 4
Enzon, Inc. ENZN 3
Celera Genomics CRA 2
Alkermes, Inc. ALKS 2
An investor may obtain Biotech HOLDRs by purchasing them on the American
Stock Exchange or by depositing with the Trustee the required share amounts of
the 20 underlying biotechnology stocks and paying an issuance fee of up to
$0.10 per HOLDR to the Trustee. Investors also may cancel their HOLDRs by
presenting them to the Trustee and paying a cancellation fee of up to $0.10
per HOLDR to the Trustee in return for delivery to the investor of the 20
biotechnology stocks represented by the HOLDRs. The issuance and cancellation
of HOLDRs is not a taxable event, and this mechanism will provide investors
with investing and trading flexibility.
Merrill Lynch is one of the world's leading financial management and
advisory companies with offices in 44 countries and total client assets
exceeding $1.5 trillion. As an investment bank, it is the top global
underwriter and market maker of debt and equity securities and a leading
strategic advisor to corporations, governments, institutions, and individuals
worldwide. Through its Asset Management Group, the company is one of the
world's largest managers of financial assets, which total approximately
$514 billion.
SOURCE Merrill Lynch & Co., Inc.
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http://www.merrilllynch.com
Company News On-Call:
http://www.prnewswire.com/comp/555800.html or fax,
800-758-5804, ext. 555800
CONTACT:
Erik T. Hendrickson of Merrill Lynch,
212-449-7293, ehendrickson@exchange.ml.com
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