Listing fever of nordic life sciences
Copenhagen – Denmarks Lifecycle Pharma has finally entered the Copenhagen Stock exchange being the 12th listed Danish life science company. This is following in the footsteps of Swedish Biovitrum AB, Danish Curalogic A/S and Norwegian Clavis Pharma ASA, all indicating that Nordic life science companies seem to be undergoing a listing fever this year.
Whereas Biovitrum raised SEK770 million (a84 million) in September and has seen its share price rise from SEK100 (a11) to a current price of about SEK117 (a13), Lifecyle Pharma has finally received about DKK484 million (a65million) through the sale of 11 million shares at DKK44 (a6). Thus, the price came in at the midpoint of the proposed DKK38-DKK50 (a5-a7) range valuing the company at a total of DKK1.5 billion (a201 million). This makes the IPO of Lifecycle much bigger than the latest Danish biotech IPO undertaken by Curalogic A/S in May this year where the company was valuated at DKK313 (a42million).
However, in comparision to Curalogic, which is developing its own new drug candidates, Lifecycle Pharma is specialized in reformulating established drugs using its proprietary MeldDose technology. The company was first spun out of Lundbeck as PharoTech A/S in 2002 and adopted its current name in 2003. Since then, the company has only spent a40 million on its projects keeping staff levels to a minimum of currently 42 employees. The IPO has been expected to float enough money into the pockets to bridge the gap until the most advanced drug candidate LCP-Fenochol will bring the break even. The cholesterol-lowering compound has just been filed at the FDA, and with Lundbeck A/S, Sandoz Inc. and Merck Generics Lifecycle Pharma has already won strategical partners to commercialize its first product.
Already in July, the Norwegian firm Clavis Pharma undertook an IPO raising NOK 242 million (a30million). After NorDiag in 2005, it is now the 8th listed Norwegian biotech company.