4d pharma makes dazzling debut on AIM

PHARMACEUTICAL company 4d pharma made a dazzling debut as a public company as its share price more than doubled in early trading  yesterday.

The Manchester company opened at 100p, raising £16.55m, and the shares soon surged past the 200p mark, giving it a market capitalisation of £74.2m. By 4pm the price had softened to 172.5p, still 70%..

Considerable interest in the Grafton Street-based company was expected, given that its non-executive chairman, David Norwood, has a strong track record with spin-out businesses, having founded IP Group plc.

In their prospectus the company, which is being advised by Zeus Capital, said:
“The directors believe they will be able to build a valuable company with a portfolio of projects by targeting assets in new therapeutic areas that address defined patient populations with unmet needs and a clear, rapid regulatory pathway.”

The company added: “The net funds raised will be used for working capital whilst the board seek suitable assets and, where applicable, acquisitions.”

Founded by former corporate lawyer and former 3i investor Duncan Peyton – who was an early investor in quantum dot pioneer Nanoco, 4D takes its name from  the four strands of its strategy – Discover, Deal, Develop and Deliver.

Its first programme is in the field of  the field of live biotherapeutics – a
new class of medicine which exploits recent advances in the understanding of how the bacteria naturally present in the human body play a pivotal role in developing and controlling our immune system and other aspects of health.

4d pharma has acquired a 46% stake in University of Aberdeen spin-out GT Biologics, which has developed a platform for the discovery and development of novel live biotherapeutics and also has a patented lead candidate in pre-clinical development for the treatment of an important inflammatory disease in the bowel.