LONDON (Alliance News) - Pharmaceuticals services and drug development company Ergomed PLC Wednesday said it will list on AIM on July 15 after raising GBP11 million gross in an initial public offering, money it will use to fund the acquisition of its sister company and further deals.
The company priced its IPO at 160 pence, giving it an initial market capitalisation of GBP46.0 million.
Once admitted to trading, it will complete its acquisition of drug safety and medical information services company PrimeVigilance, its sister company, for cash and shares. It is paying GBP6 million in cash and 1.9 million new shares worth GBP3 million at the IPO price.
The UK-based specialist in oncology, neurology, immunology and the development of orphan drugs said it will use the remainder of the GBP9.7 million net proceeds from its IPO to make further acquisitions, buy a proven data management/biostatistics platform to increase the data management capability of its services business, and to expand its rare disease franchise.
"This listing provides a great opportunity to expand and accelerate our growth as we look to become one of the leading global providers for rare disease/orphan drug development services, post marketing services and to expand our portfolio of co-development partnerships," Chief Executive Miroslav Reljanovic said in a statement.
Ergomed and PrimeVigilance combined generated GBP19.2 million in pro forma revenue in 2013.
By Steve McGrath; stevemcgrath@alliancenews.com; @stevemcgrath1
Copyright 2014 Alliance News Limited. All Rights Reserved.