Merger talks drive IS Pharma’s shares

SHARES in IS PHARMA, the Cheshire-based pharmaceutical company, rose 13% to a high of 94p yesterday on the back of merger talks.

Surrey-based Sinclair Pharma said it was in advanced discussions over a possible tie-up with Chester-based IS Pharma, which specialises in buying, developing and marketing hospital medicines.

The all-share deal would create a group headquartered in Surrey with a focus on drugs for oncology, critical care and wound care. It would have a market value of £120m based on Friday’s prices.

IS Pharma shareholders are expected to receive 2.68 Sinclair Pharma shares for each of their shares.

“The boards of Sinclair Pharma and IS Pharma believe that there would be cross-selling opportunities by combining the two portfolios,” said Sinclair.

“Furthermore, the combined group would have an in-house development capability which would be focused on leveraging the existing portfolio as well as new development opportunities.”

If the deal goes through Sinclair Pharma shareholders will own 62.4% of the new group while IS shareholders will have 37.6%.