Chris Evans Targets Struggling UK Biotech Firms

Strategic Insights -

Biotechnology entrepreneur Chris Evans is reportedly poised to make a bold move on several UK biotech companies that have faced recent setbacks, including Scotia Holdings, Cantab Pharmaceuticals, Vernalis, and British Biotech. Evans' Merlin Biosciences has recently raised a £150m fund, giving it the resources to acquire assets from struggling companies. Evans is said to be more likely to acquire drugs and development projects rather than taking on entire companies, which could accelerate the growth of Merlin's portfolio of private biotech firms.

Key Takeaways:

  • Chris Evans' Merlin Biosciences has raised a £150m fund to acquire assets from struggling UK biotech companies.
  • Scotia Holdings, Cantab Pharmaceuticals, Vernalis, and British Biotech are among the companies being targeted by Evans.
  • Evans is more likely to acquire drugs and development projects rather than taking on entire companies.
  • The assets acquired could accelerate the growth of Merlin's existing portfolio of private biotech companies, which include Dundee-based Cyclacel, Eurogene, Microscience, and ReNeuron.
  • Apax, a venture capital group, has purchased a 9.1% stake in Cantab Pharmaceuticals and will play a key role in deciding the company's fate.
  • Paul Haycock, Apax's head of bioscience, previously served as chief executive of Cantab.
  • Juri Sikorski, Cantab's current CEO, is under increasing criticism for the company's recent failures, including the collapse of a proposed merger with Peptide Therapeutics.

Statistics:

  • Shares of Scotia Holdings fell from 123p to below 22p in a week, closing at 21p.
  • Cantab Pharmaceuticals' shares lost two-thirds of their value after the company's genital warts vaccine was found to be ineffective.
  • Vernalis has faced numerous setbacks and uncertain strategy.
  • British Biotech has been slow to recover from the scandal that rocked it two years ago.
  • Apax purchased a 9.1% stake in Cantab Pharmaceuticals after the company's shares collapsed.

Sources:

  • The Sunday Times, 2000 (cited in original text as the source of the news)