Cork company begins trading in London

Kinsale-based science research firm EiRx Therapeutics began trading in London today for the first time.

EiRx, which develops drugs that target cancer and inflammatory disease, was founded in 1999 by Professor Tom Cotter, head of biochemistry at UCC.

The shares will launch on the Alternative Investment Market and the company said it expects to raise about £1.1m (€1.59m) from placing its shares. The shares are expected to open at 6.5p (9 cent).

The company's managing director, Dr Ian Hayes, said the listing would raise funds to speed up the development of the company's products and also raising its profile among the investor community.

Analysts say the company's technology could eventually be applied to 70% of known human diseases. In common with many other new companies on the AIM, EiRx's listing will take the form of a private placing of shares rather than a mass offering to retail investors.

The placement will be handled by London stockbrokers Hoodless Brennan & Partners.

EiRx employs 12 people at its base in Cork Airport Business Park. Its major shareholders include 3i, one of Europe's leading venture capital providers, World Life Sciences, another AIM-listed science company and Enterprise Ireland.

The company can earn fees for consultancy and access to its technology of up to €3.8m per drug target.

Its most recent research agreement is with SR Pharma, a quoted drug company with expertise in the area of the human immune system, in December 2003.