LONDON (Alliance News) - UK-based biopharmaceutical company Mereo Biopharma PLC's shares surged on their first day trading on London's AIM market on Thursday.
The company raised GBP14.8 million from its float on London's junior market, including GBP11.4 million via a share float at 221.00 pence and a GBP3.5 million convertible loan from Novartis AG, the Swiss drugmaker.
Its market capitalisation upon admission was around GBP142.0 million.
Mereo shares were up substantially on their debut, rising 22% to 269.8p.
Last July, the company bought three phase II product candidates in an initial portfolio from Novartis, and secured GBP20 million in funding in a private placement, with a further GBP56.5 million committed.
Mereo said that, since then, it has begun a phase II and phase IIb study for two of the product candidates, and plans to begin registration studies in the second half of the year for a third product candidate.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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