Clinigen buys Quantum in £135m cash-and-shares deal
Iain Withers ONE of the largest companies on London’s junior market Aim, hospital drugs supplier Clinigen, has agreed a deal to snap up troubled rival Quantum Pharma for £135m.
The news sent shares in Quantum Pharma up 18.3pc to 78.5p but its suitor, which has a market value of more than £1.2bn, suffered a 4.6pc fall to £10.60 as investors mulled over the tie-up. The offer is for 37p in cash and 0.0405 new Clinigen shares per Quantum share, worth 79.93p a share last night.
Shaun Chilton, chief executive of Clinigen, told the move would enhance its ability to supply novel drugs to clinicians and enable it to expand further into continental Europe. He said further acquisitions could be on the cards, saying: “We would consider further bolt-on deals to add speciality pharma products or to extend our geographical footprint.”
He added the deal would be “immediately earnings accretive”. It comes after a tough couple of years for Quantum as it struggles to regain value after delays winning regulatory approvals for drugs dragged down its share price.
Its stock is well down on its 163p peak in June 2015 and below its listing price of 97p at the end of 2014. However, Mr Chilton praised Chris Rigg, Quantum chief executive, for starting a “turnaround” job at the firm, which has seen its share price recover value since he was confirmed in the role last October. Mr Rigg will join the Clinigen board and executive management team.
Clinigen specialises in getting medicines to patients in countries where the product is either not licensed or is in short supply. It also supplies medicines used in clinical trials and buys drugs from third parties it believes it can introduce into new markets. It is also investing in collecting real-world data from patients using their medicines.