 UK drug group Renovo soars on London debut
Monday 10th April, 2006
Taken from Reuters (10/04/06)
LONDON, April 7 (Reuters) – Shares in UK biotechnology company Renovo (RNVO.L: Quote, Profile, Research) soared by over a third on Friday as the Manchester-based group made its London Stock Exchange debut.
It was a case of second time lucky for Renovo, which postponed its initial plan to float last May due to tough market conditions.
By 0740 GMT, the stock was trading at 115 pence, up 32 percent from its issue price and giving the company a stock market value of nearly 204 million pounds ($357 million).
Renovo, which develops drugs to prevent and reduce scarring, raised about 50 million pounds, more than the 40 million it had originally expected, in a sale the group said was significantly oversubscribed.
Founded in 2000, the company plans to use the funds to further develop its main products. Its leading treatment, Juvista, is injected into the margins of wounds to prevent scarring and has completed two mid-stage Phase II clinical studies.
Renovo also has another three drugs undergoing human testing and 13 in pre-clinical development.
Current shareholders and management kept their stakes in the company and are prevented from selling their holdings in the group for periods of between six months and a year after the flotation.
Goldman Sachs acted as sole bookrunner for the offer, while Nomura Code Securities was joint-lead manager.
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