Starting in late 2013 and carrying on into 2014, a slew of healthcare listings and fundraisings - particularly on the US NASDAQ exchange - prompted speculation that another biotech bubble was brewing. The subsequent headline-grabbing mega-mergers which dominated the sector over the summer appeared to back up this argument. But interest in the sector, in London in particular, has remained healthy, as illustrated by the float of Quantum Pharma (QP) on London’s junior Aim market earlier this month.
Quantum works to supply "specials" to British pharmacies. These "specials" are medicinal products that are prescribed by doctors to treat specific cases whereby a licensed product does not exist or is no longer available for patients.
The company successfully raised £106m by placing 106m shares with investors at 100p apiece. Based on these figures, Quantum's market capitalisation on admission was roughly £125m. Chief executive Andrew Scaife said the proceeds would be used to repay a proportion of the group's debt. But it will also enable it to complete the acquisition of Colonis Pharma Limited, a pharmaceutical product development business. Otherwise, Mr Scaife said the float meant Quantum could "raise its profile" with investors and thus facilitate future equity fundraisings.
But Quantum wasn't the only healthcare newcomer in the last couple of weeks. Nanomedicine company Midatech (MTPH) joined Aim on 8 December, raising £32m by placing 11m new shares at 267p each. Upon admission, the company had a market capitalisation of roughly £74m. In addition to the £32m raised, the group confirmed an existing investor subscribed £1.9m, which effectively repaid a debt due at the IPO. Most significantly, a major new shareholder was Woodford Fund Management, which has taken nearly 20 per cent of Midatech. Like Quantum, Midatech also used its IPO to complete an acquisition. It bought Q Chip Limited, a company based in Wales that specialises in developing sustained-release treatments.
