Clinigen float could lead to other IPOs
ADVISERS are hoping that the IPO of Burton-based pharmaceutical business Clinigen Group could inspire other companies to seek a listing.
Clinigen will start trading on the Alternative Investment Market (AIM) today with an estimated value of £170m.
The company supplies drugs and technical services to pharmaceutical companies for medical trials, manages drug supplies and sells specialist medication only used in hospitals.
Key to its business model is buying licences for existing drugs and finding new markets and uses for them.
It has offices in the US and Japan and manages the supply of drugs to 53 countries, with overseas sales representing the bulk of its revenues. In the last few years, revenue from the US market has grown to $50m.
Accountancy and business advisory firm BDO acted as reporting accountants to Clinigen Group on its AIM IPO. Steve Ward, Birmingham-based partner at the firm, said: “Having been ranked number one in the Sunday Times BDO Fast Track 100 in December last year, it was clear that the company had set its sights on fast, sustainable growth.
“AIM was the perfect platform for such an innovative company’s growth strategy and all credit is due to the management team for getting the IPO away in these challenging markets.
“As an audit client here in the Birmingham office, we were delighted to work with the management team on its admission to AIM. We are confident that such a high profile listing for the region and the fundraising will be a springboard for further domestic and international growth for Clinigen.”
And Ward is clearly hopeful that other growth businesses will follow suit.
“IPOs on AIM have been few and far between so far this year but hopefully, with the wider economic situation potentially stabilising following the recent actions by the European Central Bank and the Federal Reserve, companies may be encouraged to dust off their IPO plans, especially if they need funds to expand,” he said.
All but eight of Clinigen’s 78 employees are based in Burton and the company plans to recruit further following the initial public offering.
