The Dublin-based biotechnology company Biotrin Holdings is planning a stock market listing in London, and possibly Dublin, within the next 12 months after completing another private placing which values the company at £28 million. In its third round of equity financing the company has raised £7.6 million from a group of Irish, British, Swiss and American investors.
Biotrin's chief executive, Mr Cormac Kilty, described the latest equity financing as "a pre-flotation fund-raising" and added that it had been structured to widen the shareholding base. All the existing investors (Biotechnology Investment, Delta Partners, Forbairt, ICC Venture Capital, IIU and New York Life) took part in the equity issue.
New shareholders include Credit Suisse Asset Management, Reabourne Merlin Life Sciences Investment Trust, Montgomery Oppenheim and Curran Capital. Following the latest financing, Biotechnogy Investment, part of Rothschild Asset Management, is the biggest shareholder with around 25 per cent.
Two specialist investment funds operated by Credit Suisse have 16 per cent of the company, while the company founder, Dr Kilty, has about 12 per cent. Dr Kilty said that the other investors have broadly similar shareholdings in Biotrin.
He said that Biotrin would aim to have at least one acquisition - in the $2 million to $3 million range - under its belt before it comes to the market. No final decision on a specific market has been taken, but he said that London - with a possible dual listing in Dublin - is most likely, although the Easdaq market has not been ruled out as an option.
"London has become a more sophisticated market for biotechnology companies but we have reserved our options as regards Easdaq," said Dr Kilty. A Nasdaq flotation in New York is a less likely option, given Biotrin's size and current concentration of business in Europe, he added.
He said that when Biotrin does come to the market, it will probably raise further equity finance which will be used for research and development, marketing, and an expansion of its business into the US market. "We have built up significant sales for a start-up company but our target is a market worth $450 million. We have grown so far through our own revenues and equity but our future is down the pipeline and that's where the investment will go."
Biotrin was set up in 1992 to develop diagnostic test technologies and has patented a urine dipstick to assess kidney damage and another test system for human parvorirus testing. The company is based in Dublin where it employs 57 people as well as having sales subsidiaries in Germany and France.
"Our end-users at the moment are hospitals but we want to expand into home and doctor-testing for kidney toxicity and into emergency rooms, and to do that we would need a partner," said Dr Kilty. "Many pharmaceutical companies enter into partnerships with companies like us and we would hope to sign some partnerships like this in the next 12-18 months," he added.
"Our aim is to go through acquisition, and we could do a £3 million deal no problem. We would hope to make at least one such acquisition before an IPO," he said.
