False Start For Nanosys - Nanosys Inc., a company that develops technology aimed at building new materials by manipulating atoms and molecules, withdrew its highly anticipated initial public offering Wednesday.

Palo Alto, Calif.-based Nanosys cited "adverse market conditions" as the reason it pulled the IPO. The company, which reported an $8.8 million loss for the first six months of 2004, had been hoping to raise about $100 million and use the proceeds to help meet its operating and capital requirements over the next year.

Proponents tout nanotechnology as a potential multibillion-dollar industry. But so far, nanotechnology has yielded only modest commercial products like stain-resistant fabrics, and some scientists say nanotech's profit-making future is still 10 to 20 years off.

Nanosys says it has more than 200 patents and patent applications covering its discoveries. The company's regulatory filings say it's in the early stages of research to develop products for industries, such as energy, defense, electronics and information technology.