Bioglan rescue bid in final stage
Beleaguered biotechnology company Bioglan Pharma is in the last stage of rescue talks with US research group Quintiles Transnational Corp.
The talks will secure a deal believed to give Quintiles a 30% share in Bioglan through new share issues and would force founder and chief executive Terry Sadler to dilute his 35% holding in the company.
The British biotechnology company saw its financial health fail last year when it attempted to acquire US competitor Bristol-Myers Squibb’s skincare operation for $765m.
The takeover bid failed, leaving Bioglan indebted. It still owes £105m to a consortium of banks led by Royal Bank of Scotland.
Earlier this week, the British company sold its Danish generic drug makers to a Scandinavian holding company for £1.2m, the proceeds of which will be used to pay off creditors. The buyer also agreed to take on the Danish subsidaries’ £500,00 debts.
Bioglan, whose market capitalisation was £577m at its peak, is now worth only £2m.
