Discover a new Horizon

Horizon provides research tools and services to larger institutions or laboratories that develop treatments derived from the genetic roots of serious diseases. Specifically, these 'tools' allow genome sequences to be edited, so future treatments are customised - or more personal - for the patients receiving them.

The story of personalised medicine is very important for today's modern healthcare industry. Most existing drugs don't have the best track record for efficacy - for example, it's estimated only 25 per cent of cancer patients receive effective treatment for the long term. Gene-based therapies (ie, drugs developed based on the genetic triggers for certain diseases) could change this. For one, researchers could better select patients who would benefit in the final stages of a clinical trial, and if that drug were approved for public use clinicians would know which of their patients would respond best to it.

Horizon is good at playing into trends in the healthcare sector. It managed to take advantage of the biotech IPO flood with its London float earlier this year. And now, it's thriving off the M&A frenzy currently gripping the sector. But the SAGE deal is particularly important for Horizon because it significantly strengthens its product portfolio. Before, Horizon specialised in 'in vitro' tools, which allow cells or molecules to be analysed outside of the body. Some experts are critical of this approach, arguing that research should be conducted 'in vivo', or in the cell's 'natural environment' (in this case the human body) to truly understand the nature of disease. The focus of SAGE's business has been developing gene-editing technologies for 'in vivo' research in mammals. What's more, by acquiring SAGE, Horizon has bought itself 43,000 sq ft of facility space in the US, along with 50 more employees.

To fund the deal, Horizon will make use of the £38m raised at the IPO. Roughly $16m (£10m) of cash will be paid out for SAGE with a further $32m coming from the issuing of 11m new shares. The SAGE acquisition follows on from the £4.7m purchase of Horizon CombinatoRx, which was another strategically important deal to broaden the offering. However, the pace of acquisitions does mean there is some integration risk.