Clin­i­gen buys Quan­tum in £135m cash-and-shares deal

The Daily Telegraph - Business - - Business - By The Daily Tele­graph

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.

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