Shares in AGI Therapeutics, a drugs company founded two and a half years ago by former Elan executives, began trading yesterday on the Irish Enterprise Exchamge (IEX) market in Dublin and on London's Aim.
AGI, the first company to list on the IEX this year, also raised €42.5 million after placing 33.7 million new shares with a range of Irish, British and continental European investors at €1.26 per share.
The company, which was valued at nearly €85 million when it began trading at €1.26 yesterday, closed at €1.50, valuing it at around €101 million.
AGI, which was founded in 2003 by Dr John Devane, a former executive vice president of research and development at Elan, focuses on gastro-intestinal drugs. The Dublin-based company currently has six drugs in clinical trials, designed to treat conditions such as irritable bowel syndrome, dyspepsia and colitis. Results from the studies should start to emerge from the early summer onwards.
AGI intends using the €42.5 million raised from the placing to take one of the products into Phase III development. It is awaiting the results of clinical studies before deciding which treatment to proceed with.
Meanwhile, it plans to enter into licensing and development agreements with other pharmaceutical companies for the remaining products.
Prior to the flotation, around 50 per cent of the company was owned by management with a further 50 per cent held by the four venture capital companies who supported its €9.5 million fund raising in May 2004.
Following the placing, ACT Venture Capital, Delta Partners, Seroba BioVentures and US fund Merlin Biomed will own around 25 per cent of the company with new investors holding 50 per cent.
Management will retain around 25 per cent, including Dr Devane's shareholding of 15 per cent. It is understood that AGI chairman and Icon founder and director Dr Ronan Lambe, subscribed for shares as part of the placing although it is not known how much he invested.
All existing shareholders have agreed to a 12-month lock-up period, during which they are precluded from selling their shares.
AGI's listing brings to 14 the number of companies now listed on IEX, the junior market of the Irish Stock Exchange.
