The first European IPO was made several months after the window opened in Japan (Nat. Biotechnol. 21, 1256–1257, 2003) and the United States (Nat. Biotechnol. 21, 1413–1414, 2003). Although quoted biotech companies performed better than the general market in 2003 (see Box 1), “IPOs in Europe will be few and far between [in 2004],” predicts the report “European biotech: still playing catch up” published in February 2004 by investment bank ING (London). Its authors say that pharmaceutical company spinouts are the most likely to complete an IPO, hoping to emulate Actelion (Allschwill, Switzerland), whose management and products were once part of Roche (Basel). As Nature Biotechology went to press, likely candidates to enter the public markets were Roche's infectious disease spinout Basilea Pharmaceutica (Basel), Pharmacia's metabolic spinout Biovitrum (Stockholm) and Aventis' musculoskeletal disorders spinout ProSkelia (Romainville, France).
ProSkelia's track record as a pharma spinout, and their three products in four indications in the clinic makes them a good IPO candidate because they have a pipeline big enough to spread risk and generate news flow to keep investors interested. But “despite these assets, the company would have greater valuation on the market if we integrated a commercial platform through an acquisition or merger,” explains Roland Baron, the company's founder and CSO. To gain critical mass, the company is thus considering opportunities for consolidation before filing an IPO. Scottish specialty drug maker Strakan (Galashiels, UK) is a potential candidate for a merger.
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