Irish drug research company to list on AIM

A CORK drug research company will complete its journey from UCC start-up to the London Stock Exchange early next month.

EiRx Therapeutics, which develops drugs that target cancer and inflammatory disease, will list on the Alternative Investment Market for smaller and developing companies on January 5.

The company was founded in 1999 by Professor Tom Cotter, head of biochemistry at UCC, and conducts research into the area of apoptosis, which relates to the process of cells dying naturally.

Dr Ian Hayes, EiRx’s chief executive, said the listing would raise funds to accelerate the development of the company’s products as well as raising its profile among the investor community and help it attract future partners.

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.

Other companies that have taken the AIM route and are well-known to Irish investors include the Mean Fiddler Group, the concert and music venue operator headed by Vince Power, and Alltracel Pharmaceuticals, the Dublin-based developer of first aid products.

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 State business development agency.

Dr Hayes was upbeat about the company’s strategy and future prospects. “We’re looking to avoid the pitfalls faced by other small biotech companies. We’ll exploit revenue streams from servicing agreements, licensing and joint ventures, so we’re not dependent on one success alone,” he said.

Dr Hayes, who joined EiRx from international drug giant Aventis, declined to say how much money the company hoped to raise from the listing. EiRx has identified over 200 potential drugs and has formed alliances with six other pharmaceutical companies.

The company can earn fees for consultancy and access to its technology of up to €3.8 million ($4.7 million) per drug target. It signed its most recent research agreement with SR Pharma, a quoted drug company with expertise in the area of the human immune system, earlier this month.