Drug development firm to debut on AIM next week

DRUG development company Evgen Pharma has confirmed it will make its initial public offering on October 21, raising £7m before expenses. 

The Liverpool-based company, which focuses on treatments for cancer, strokes and Multiple Schlerosis, said the placing had been oversubscribed with a price of 37p a share, giving the company a market capitalisation of £27m at the placing price.

Evgen’s core technology Sulforadex is a patent-protected method of stabilising a synthetic version of sulforaphane, which is a naturally occurring,  known anti-cancer agent derived from broccoli and other brassica vegetables.

The company, which is backed by the North West Fund and last month raised £2m through Manchester-based corporate finance firm Acceleris, said it would use the proceeds of the placing for a Phase IIa study in metastatic  breast cancer, a Phase II study in subarachnoid haemorrhage (a type of stroke) and preclinical studies in multiple sclerosis. 

Chief executive Dr Stephen Franklin said: “We are very encouraged by the support shown by investors in this placing and we are delighted to be joining the AIM market. The placing was significantly oversubscribed owing to the high level of interest in our Sulforadex technology. 

“The proceeds of the placing will assist us to create shareholder value by advancing our clinical and preclinical programmes and further strengthening our leadership position in pharmaceuticals based on sulforaphane and related analogues.”

The listing finally comes after the company put its plans on hold in March. The company also tried unsuccessfully to float on AIM last December, but on that occasion it had been looking to raise £20m.

Northland Capital Partners is the company’s nominated adviser and broker.