Bioglan Pharma plans pounds 200m float next year
Tuesday 19 August 1997
In an unusual decision for normally cash-hungry drug groups, Bioglan, which was incorporated in 1932 and has subsidiaries in five countries, cluding Germany and the US, may not raise any new money when it floats.
Terry Sadler, who joined the company as chairman and chief executive in 1985, transforming it from a vitamin group to a drug delivery specialist, said Bioglan was profitable and would not need to seek new money unless it wanted to make more acquisitions, a possibility in the US.
"We have always generated enough cash internally to fund our research. We are an unusual combination. We're UK-based, we invest heavily in research and we're profitable," he said.
Since Mr Sadler joined, the company has raised finance only once, pounds 10m with private investors last year.
The company manufactures and sells a range of prescription drugs to treat skin conditions like acne and psoriasis, but is investing in potentially lucrative drug delivery technologies.
The group, which employs 170 people, more than doubled pre-tax profits to pounds 1.4m on turnover 53 per cent ahead to pounds 15m in the year to January. When Mr Sadler joined the group was turning over pounds 94,000 and employed three people.
Mr Sadler, who owns 56.8 per cent of Bioglan's shares, said a flotation would increase the group's attraction to big drug partners: "We want to benchmark the company. There is a tendency for big pharma companies to take a public company more seriously." Hitchin-based Bioglan already has licensing agreements with major drug groups, including Merck and Novartis. Though the company currently makes its money from manufacture and sale of skin creams like Metrogel for acne and Cocosis for scalp diseases, it is investing around pounds 3m a year in novel drug delivery technologies. Mr Sadler plans a significant rise in R&D spend to around pounds 17m over the next three years: "Making drugs which are easier to take has vast potential. Poor compliance is one of the biggest problems facing any pharmaceutical company trying to sell its drugs. There is a great need for methods which make taking drugs less painful and disruptive." The company is focusing on novel protein delivery technology, the most difficult and competitive, but potentially most lucrative drug delivery market. Important proteins like insulin or human growth factor currently cannot be taken by mouth as they are broken down by the stomach and have to be injected instead. Bioglan's biosphere technology enables molecules to be applied to the skin and released over two weeks. He expects the company's most advanced product, a gel used with antiviral drugs, to reach market by 1999. "Drug delivery companies work with existing drugs, not new chemicals. Time to market is quicker," said Mr Sadler.
Mr Sadler said a flotation would also increase stock liquidity, though he said he did not intend to sell more than "a minium" of his own holding: "We want to reward investors and employees for their support. But we are all in this company for the long term. There is no question of us cashing in and getting out." Shareholders in the company, which is being advised by Hoare Govett, include Abbey Life Assurance and Shell Pensions.
- 2 Rarest Beanie Baby of them all could be sold for £62,500 on eBay
- 3 Driving while dehydrated can be just as dangerous as drink driving, study suggests
- 4 Ben Affleck asked TV chiefs to hide slave-owning ancestry, new hacked Sony emails published by Wikileaks claim
- 5 Farmer told to tear down mock-Tudor castle after hiding construction behind hay bales
Alan Rickman admits editing 'terrible' script with friends in Pizza Hut behind backs of writers on Robin Hood: Prince of Thieves
Rarest Beanie Baby of them all could be sold for £62,500 on eBay
Professional big game hunter Ian Gibson crushed to death by elephant during hunt
Ben Affleck asked TV chiefs to hide slave-owning ancestry, new hacked Sony emails published by Wikileaks claim
Farmer told to tear down mock-Tudor castle after hiding construction behind hay bales
If I’m being racially abused I don’t need a stranger with a saviour complex to rescue me
The only black face in the Ukip manifesto is on the page about overseas aid
Ukip is the only main political party to not address LGBT rights in its manifesto
Food banks: One million Britons will soon be using them, according to Trussell Trust
Religion isn't growing, it is becoming vigorous in its demise, says philosopher AC Grayling
BBC election debate: The one photo that summed up the whole 90-minute leaders debate
iJobs Money & Business
£20000 - £25000 per annum + OTE £45,000: SThree: SThree Group have been well e...
£50000 - £667000 per annum + excellent benefits : Ashdown Group: IT Manager / ...
£13000 - £20000 per annum: Recruitment Genius: Scotland's leading life insuran...
£40000 - £45000 per annum + benefits : Ashdown Group: Training Programme Manag...