Biotechnology sector dives sharply
Wednesday 17 July 1996
However, they were one of the few resilient features in the sector. The bigger companies suffered with the rest. Scotia, one of the biggest behind British Biotech, plunged 44p to 671p. Celltech were down 36p at 509p and Chiroscience dropped 18p to 319p.
The British Biotech issue is underwritten by merchant bankers Kleinwort Benson and fully sub-underwritten, mostly by existing shareholders in the group. A spokesman for British Biotech said yesterday: "The money is obviously guaranteed to us, so we are relatively happy. Obviously we are a bit disappointed that the share price has not held up."
The company announced that directors would be investing pounds 100,000 in taking up rights, although three executive directors have sold part of their nil-paid rights to take up the remainder of their allotments. Chief executive Keith McCullagh, finance director James Noble and John Gordon, another executive, have sold rights at 10p as a prelude to taking up new shares.
However, analysts remained doubtful last night that the group would be able to complete the cash call successfully. Robin Gilbert at Panmure Gordon said: "The British Biotech issue is struggling and is causing a reassessment of people's commitment to the sector." It would be surprising if it gets away, he said. "I am sure there will be a lot of unwilling holders."
Another analyst said sentiment towards the sector would depend on how the Biotech issue went. He said: "We may not have seen the end of this markdown. I would call it more of a markdown than a selling frenzy."
Other recent or coming biotech issues were putting a brave face on the affair yesterday. Cambrio, one hopeful, confirmed its intent to float at the end of the month.
- 1 President of Argentina adopts Jewish godson to 'stop him turning into a werewolf'
- 2 Doctors remove 80 teeth from boy's jaw
- 3 The 'Black Museum': After 150 years, public set to see exhibits from police’s grisly crime museum
- 4 Stoke-on-Trent becomes first British city to be classified as 'disaster resilient' by the United Nations
- 5 Sir Winston Churchill’s family begged him not to convert to Islam, letter reveals
President of Argentina adopts Jewish godson to 'stop him turning into a werewolf'
The 'Black Museum': After 150 years, public set to see exhibits from police’s grisly crime museum
Downfall of Dustin 'Screech' Diamond, the 'Saved By The Bell' star charged with bar stabbing
Syrian teenager Usaid Barho reveals how he escaped from Isis using a suicide vest
Sir Winston Churchill’s family begged him not to convert to Islam, letter reveals
Millions of Britons struggling to feed themselves and facing malnourishment
British actor Idris Elba cannot star as James Bond because he is black, says shock jock Rush Limbaugh
Ukip member gets into Christmas spirit with Union Flag plea to Santa 'for our country back'
Germany anti-Islam protests: 17,000 march on Dresden against 'Islamification of the West'
Nigel Farage: Ukip leader named 'Briton of the year' by The Times
Immigrants make UK racist, says Ukip councillor Trevor Shonk
iJobs Money & Business
Not specified: Selby Jennings: VP/SVP Credit Quant Top tier investment bank i...
Not specified: Selby Jennings: Quantitative Research | Global Equity | New Yor...
Not specified: Selby Jennings: SVP Model Validation This top tiered investment...
Highly Competitive: Selby Jennings: Our client, a leading European Oil trading...