21st Dec 2015 08:43
LONDON (Alliance News) - IP Group PLC, which works with universities to develop and commercialise intellectual property, on Monday applauded the initial public offering of one of its portfolio companies, Diurnal Group PLC, in a move that creates a GBP14.6 million unrealised fair value gain for the FTSE 250 investor.
Following completion of Diurnal's placing and admission to AIM, IP Group will have 23.5 million shares in the company, equivalent to a 45% stake valued at GBP33.8 million. IP Group committed GBP8.1 million to the placing. Diurnal, a specialty pharmaceutical company, targets patient needs in chronic endocrine hormonal diseases.
Diurnal, a spin-out company from the University of Sheffield, raised about GBP30.0 million in a fundraising. It will issue 17.6 million new shares at 144 pence each to raise GBP25.3 million, with the rest of the money raised through a convertible loan made available by IP Group. The five-year, interest-free, unsecured convertible loan, which raises GBP4.7 million for the spin-out, is convertible at the placing price.
Admission is expected to occur on Thursday, with Diurnal to be valued at GBP75.2 million at the placing price.
"The new funds will allow us to accelerate the development of our two leading product candidates which are in, or expected to commence shortly, late-stage clinical development targeting diseases of cortisol deficiency; Chronocort, to be used for Congenital Adrenal Hyperplasia in adults, and Infacort, to be used for Adrenal Insufficiency, including CAH in children," Diurnal Chief Executive Martin Whitaker said.
"Our lead product candidate, Infacort®, is anticipated to receive its first regulatory approval in Europe in the third quarter of 2017," Whitaker added.
Shares in IP Group were up 1.5% at 217.20 pence on Monday morning.
By Samuel Agini; [email protected]; @samuelagini
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