Shares in biotech firm Tepnel leap on takeover approach

SHARES in Manchester-based medical research group Tepnel Life Sciences surged  more than 18% today after it confirmed it was in takeover talks.

In a stock market statement the business, based in Wythenshawe, said it had received an approach which, “may or may not” lead to an offer being made for the company.

It said: “The board emphasises that discussions are at an early stage and that there can be no assurance that an offer will be forthcoming.”   

It added a further statement will be issued in due course. 

Tepnel was spun out of UMIST in the early 1990s and floated on AIM in 2001. It has two main divisions, one focused on molecular diagnostics and the other on research.

The molecular arm produces testing kits for genetic conditions like cystic fibrosis while pharmaceutical firms, such as AstraZeneca, outsource work to the research division.

The company said it had noted recent movements in its share price which initially soared 23% before falling back to 14.25p, up 18.75%.The increase puts its market value at around £35m.

Tepnel, which employs 200 people across sites in Manchester, Scotland, France and the US, announced half-year profits of £1.38m in August – more than double the figure for the corresponding period of 2007. Revenues rose to £11.77m from £8.76m.