FAST.L Share News (FAST)

(ShareCast News) - Headed by Shire founder Harry Stratford as its chairman, speciality drug company Amryt Pharmaceuticals has confirmed its plan to reverse into AIM-listed Fastnet, raise £10m and acquire two drug developing businesses.Following a capital reorganisation planned for 18 April, the reverse takeover will see Fastnet acquire the entire issued share capital of Amryt Pharmaceuticals for £29.6m in new shares on 19 April.This will be accompanied by the issue of 41.7m shares will be placed with institutions at a price of 24p, equivalent to 3p before the reorganisation, to raise £10m.Amryt, which was incorporated in August 2015 and will be led by chief executive Joe Wiley, a neurologist-turned-private equity investment executive, has also agreed to acquire German drug development and manufacturing company Birken and Swiss/US based biotech SomPharmaceuticals, both of which are focused on potential orphan drugs."Today's announcement is an important step towards realising the company's vision of building a specialty pharmaceutical company focused on best in class treatments for orphan diseases," Wiley said."We are focused on building a portfolio of differentiated medicines, in therapeutic areas where there is large unmet medical need and which offer significant commercial potential."The £10m placing proceeds will be used to begin Phase III clinical trials for Birken's Episalvan, a treatment for epidermolysis bullosa (EB), a rare genetic skin disorder and orphan condition that typically affects young children and for which there is currently no approved therapy.Episalvan, which is already approved in Europe as a treatment in adults for accelerated healing of partial thickness wounds following three successful phase III studies, has been awarded orphan drug designation in the US and EU for EB after successfully completing a Phase IIa study in ten EB patients.The global EB market is estimated to be worth approximately $1.5bn per annum.Amryt's well-stocked boardroom also includes chief financial officer Rory Nealon, fresh from 13 years on the board of NASDAQ listed Trinity Biotech, and chief commercial officer Michele Bellandi, former head of commercial Europe for Shire.