AGI Therapeutics plans €40m flotation

A PHARMACEUTICAL company fronted by former Elan executives plans to raise over €40 million from a stock market flotation.

AGI Therapeutics, which is based in Dublin, plans to list on Dublin IEX and London’s Alternative Investment Market (AIM).

The company is looking to develop drugs for gastrointestinal diseases and disorders.

It plans to raise €42.5m through the issue of 33.7m new shares.

The company was set up in 2003 by John Devane, who spent more than 20 years with Athlone-based Elan.

AGI is chaired by Ronan Lambe, the chief executive of clinical research group ICON.

Post-flotation the company is expected to be valued at over €100m.

In 2004, the company raised €9.5m in funding from a group of venture capital investors including ACT, Delta Partners, Merlin Biomed Group and Seroba BioVentures. These backers will see their holdings reduce after the listing.

Following the flotation, Mr Devane will be the largest shareholder in the company with a 15% stake.

ACT Venture Capital will reduce its holding from 21.6% to 12.1%; Delta will see its stake reduced to 6% from 10.8%, as will Seroba BioVentures. Merlin Biomed’s shareholders will reduce from 9.8% to 5.3%.

Last year AGI completed phase two clinical trials of a treatment for functional dyspepsia. It is also testing a drug for sufferers of irritable bowel syndrome, which it expects to complete early this year.

No financial figures for the company were available.