From Penny Sleuth9 Apr 2013 18:20
A strong demand for innovative healthcare
Healthcare Investment Opportunities PLC (HIO) made a low-key debut on AIM at the end of last week, raising just £4m through a placing of shares at 10p. But it is a pretty safe bet that this market capitalisation will grow substantially as chairman David Evans pursues his ambitions. Evans is a serial backer of healthcare companies. He has a proven track record and an array of contacts. He was chief executive of Shield Diagnostics when it merged with Axis and the combined group was subsequently acquired by the USA’s Alere for £235m.
He was chairman of BBA Holdings, a supplier of reagents and tests for point-of-care diagnostic devices. This, too, netted investors a tidy profit when it sold out to an American rival, Inverness Medical Innovations. He has been involved in two other companies, DxS and Sirigen, which attracted trade buyers. And he is currently involved with EPISTEM HOLDINGS (EHP) which is commercialising stem cells in the areas of oncology and gastrointestinal diseases, SCANCELL HOLDINGS (SCLP), which is working in the hot area of cancer vaccines (see Penny Sleuth 18 Dec 2012), and EKF DIAGNOSTICS (EKF), which has recently acquired the Pointman diagnostic kit that can detect one mutant gene in 100,000 normal gene copies – 1,000 times more accurately than the best competing technology today. So Evans is a man to follow, and his new fund looks well timed.
Innovation in healthcare is happening at an unprecedented pace. DNA sequencing, regenerative medicine, stem cells and incredibly accurate diagnostic tests are all offering hope to an increasingly stretched health service. As the prospectus for Health Investment Opportunities describes, “long-term demographic drivers such as the existence of an ageing population throughout the developed world, increasing spending power and demand for high-quality medical care in emerging markets mean that there is strong demand for new and innovative healthcare”.
Where will Evans put his money?
Driven by biotechnology, a revolution in medical treatment is unfolding. Pharmaceutical giants are sitting and watching, ready to pick off anything that looks especially promising. Only last week AstraZeneca snapped up AlphaCore Pharma, which is developing a new type of cholesterol medicine. As Evans has already proven, small companies that offer genuine innovation can command a big price.
So where will Healthcare Investment Opportunities invest? The first deal, investors are promised, will be a reverse takeover and can be expected within six months. The Board do not intend to create a portfolio of unconnected companies so we can expect a cohesive investment strategy to emerge. Diagnostics, perhaps because of Evans involvement in EKF Diagnostics, is unlikely to feature, but there are some clues. One possible area of interest is in genetics research and biomarker solutions. This is right at the heart of personalised me
Sign In
Follow the stocks
