LONDON (Alliance News) - Circassia Pharmaceuticals PLC Friday said it intends to acquire two separate companies for a combined GBP239 million and said it will raise GBP275 million through an open offer and a placing.
Circassia, a bio-pharmaceutical company, said 95.47 million shares or 50.4% of its existing issued share capital will be issued at a price of 288.05 pence under the placing and open offer. It said shareholders are being given the opportunity to apply for the open offer shares at this price on the basis of one new share for every two existing ordinary shares.
Shares in the company were trading down 10% at 287.00 pence Friday afternoon. The placing and open offer was underwritten in full by JP Morgan Securities PLC, which conducts its UK investment banking business as JP Morgan Cazenove, and Peel Hunt LLP.
Circassia said the placing, open offer and the two acquisitions were "associated".
The first acquisition is for a Swedish listed company focused on the development and commercialisation of medical diagnostic products for use in the diagnosis and management of patients with asthma called Aerocrine in an all-cash offer of GBP139 million.
"We believe Aerocrine's established commercial infrastructure, which is already targeting our core potential customers in key markets, will optimise the launch of Cat-SPIRE, which is the first of our next generation allergy immunotherapies, and which remains on track to report pivotal phase three results in the first half of 2016," said Chief Executive Steve Harris.
The second acquisition is for a privately-held speciality pharmaceutical company focused on the development of product candidates for the treatment of asthma and/or chronic obstructive pulmonary disease named Prosonix for a cash price of up to GBP100 million.
"Prosonix's innovative technology gives us a portfolio of near-term products targeting asthma and other respiratory diseases, which complement our current pipeline and should enable us to further leverage Aerocrine's commercial infrastructure," said Harris.
"The combined organisation will give us both the capability and resources to commercialise our enlarged late-stage pipeline of potential new allergy and asthma products, once approved, and thereby generate significant shareholder value," he added.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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