Pharma group plans 125m AIM float
Thu, 27th November 2014

Pharma group plans £125m AIM float

The parent of Congleton-based Biodose has revealed plans to float on AIM and raise more than £100m. Quantum Pharma will list on London's junior market in December and be valued at £125m.

The group, which employs more than 320 staff, said the float would raise its profile and enable access to the capital markets for further equity funding in the future, should it be needed for acquisitions and acceleration of strategy.

The net proceeds of the £106m placing will be used to acquire the remaining shares of Kent-based product development business Colonis, repay a significant proportion of the company's debt and execute its growth strategy.

The company operates through five business units: Quantum Pharmaceutical, U L Medicines, Colonis, Biodose and Quantum Aseptics.

Andrew Scaife, chief executive of Quantum Pharma, said the decision to list on AIM makes "both strategic and commercial sense" as the business enters the next stage of its development.

"Having established our position as a market leader in the UK niche pharmaceutical market in which we operate, we feel that by joining AIM, Quantum will be able to capitalise on the fantastic market opportunities that are available to us both in the UK and overseas," he said.

Quantum's overall strategy is to become "the UK's leading provider of niche pharmaceuticals and services to the pharmacy, hospital, wholesale, home care and care home markets, and to supply these medicines with the highest available service levels and delivery solutions".

Quantum current services about 6,500 pharmacies and more than 240 hospitals accounts across the UK.

Through both acquisition and investment, the company has expanded into additional markets including aseptic compounding, medication regime adherence technology, the supply of medicines to home care and care home patients.

The group has also gained "significant product development expertise" through Colonis. Revenues for the year end 31 January 2014 were £53.5m.

Manchester-based Zeus Capital is acting as nominated adviser and broker to Quantum Pharma. Nick Cowles, Andrew Jones and Jamie Peel were on the team involved in the deal and it has taken equity funds raised by Zeus Capital in 2014 past £1bn.

Cowles said: "Quantum Pharma plc is a company with an excellent management team, a solid and highly profitable core business and a very exciting growth strategy, making it ideal for the public markets.

The level of interest from institutional investors has been excellent and Quantum will be the largest Pharma company to list on the AIM market in 2014."

category North West  |  source Insider Media