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Quantum Pharma confirms Clinigen takeover bid

Clinigen has until September 13 to make a formal offer

ClinigenShares in UK drugmaker Quantum Pharma are rising fast after it revealed with was in takeover talks with larger rival Clinigen Group.

Both companies are listed on the UK's AIM and offer contract services to other biopharma companies as well as specialising in selling their own niche licensed and unlicensed medicines that are typically acquired from other companies.

Clinigen is comprised of four separate businesses - spanning contract research, managed access and specialty medicines sales - which are a fairly close match for Quantum's activities. In 2015 it bought Idis for £225m to gain a firmer foothold in the $5bn unlicensed medicines market and in clinical trial supply.

In a statement, Quantum said that it "has received an indicative proposal from [Clinigen] regarding a possible offer for the company … to be satisfied through a combination of new ordinary shares in Clinigen and cash."

Clinigen confirmed the move this morning but stressed its proposal is "non-binding and is subject to material preconditions including customary due diligence" and so may not go ahead. The company has until September 13 to make a formal offer under UK takeover rules.

The confirmation of Clinigen's interest in Quantum comes after the latter agreed the sale of its Biodose Services unit - a specialist in homecare dispensary and delivery services - to HealthNet Homecare for £1.95m in June.

At the time, Quantum said the disposal was part of a drive to simplify its pharma business and deliver "higher quality earnings". Last year it also closed its loss-making NuPharma unit - a contract manufacturing organisation specialising in niche products - which was bought in 2015 for £9.34m.

Quantum is due to report interim results later this month but has indicated its restructuring exercise has yielded "a significant improvement in financial performance and an overall higher margin business".

Last week, Quantum's recently-appointed chief executive Chris Rigg said the company was benefiting from its transformation to "a focussed pharma business, free from distractions", and added that Quantum is "very well placed to maximise the opportunity in the UK, develop internationally as well as drive efficiencies through our business".

Article by
Phil Taylor

17th August 2017

From: Sales



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