Abingworth becomes IS Pharma's largest shareholder
This article was originally published in Scrip
IS Pharma, a UK-based speciality pharma company, has raised £3.6 million through the issue of 4.6 million new ordinary shares at 77 pence each with venture capital firm Abingworth. Following the placing, Abingworth will become IS Pharma's largest shareholder with a 13% stake.
The placing price represents a 9% premium
IS Pharma has stated its intention to strengthen its product portfolio by acquisition of late-stage drugs and medical devices, in particular, within its existing specialist therapeutic areas of oncology, critical care and neurology. However, the proceeds from this financing will be used to pay off some contingent liabilities from historical acquisitions.
The company added that given a strong and sustainable increase in revenues and profits, together with a strengthened balance sheet from the financing, it planned to introduce a maiden dividend for the year ended 31 March 2011.
Joseph Anderson, a partner at Abingworth, said he saw "substantial growth opportunities ahead" for IS Pharma.