£4.5m deal by drug firm set for AIM

A Dublin-based pharmaceuticals company which plans to float on the London Alternative Investment Market (AIM) next month has announced a £4.5 million investment and acquisition.

Alltracel Pharmaceuticals will invest up to £4.5 million to acquire Franklin Pharmaceuticals Ltd, of Trim, Co Meath, on successful completion of due diligence. The acquisition price, which will be made up of cash and shares and is included in the £4.5 million investment, has not been disclosed.

The company hopes to raise an initial £2 million from the flotation and will make a further acquisition of a pharmaceutical company in the next "four to five months". That purchase will be larger than the Franklin purchase and will be abroad.

Alltracel Pharmaceuticals was set up in October 1996 by Alltrade Financial Investment Ltd. The company is expected to be in profit later this year.