Destiny Pharma launches IPO, unveils Asian partnership
The London-listed developer of novel anti-microbial drugs has paired up with China Medical System under a deal that will see the latter hold full rights in China and certain other Asian countries - excluding Japan - to enable the development and commercialisation of Destiny Pharma's pipeline in the region.
China Medical System will invest GBP3 million into Destiny Pharma as a result of the agreement, aligning the pair as they work together in the further research and development of the Destiny Pharma anti-infective portfolio.
"It is planned that the parties will coordinate and share data from their respective studies and Destiny Pharma will benefit from the investment China Medical System will make in the assets' development in China.
"Once formalised, Destiny Pharma will also be able to receive future milestones based on the achievement of sales targets by China Medical System and may also make a manufacturing margin on any product Destiny Pharma supplies," said Destiny.
In addition, China Medical System's controlling shareholder, A&B (HK) Co Ltd, has also invested GBP3 million in Destiny on Monday under its IPO.
Destiny Pharma has raised a total of GBP15.3 million under its IPO, issuing 9.7 million shares at 157.0 pence each to new and existing institutional investors. The firm raised more than the initial GBP13.5 million targeted when it published its admission document late last month.
Destiny Pharma entered AIM with 41.7 million shares in issue, valuing the firm at GBP65.4 million.
Shares were trading 16% higher on Monday at 184.0 pence, valuing the firm at GBP76.6 million. ■