Alimentary Health, a loss-making start-up biotech firm spun out from University College Cork, is mulling a possible flotation on the small-cap markets in London and Dublin.
Backed by Enterprise Ireland and venture fund Seroba BioVentures, Alimintary makes products to treat gastro-intestinal disorders such as irritable bowel syndrome, infectious diarrhoea and inflammatory bowel disease.
The company reported a loss of €281,316 in 2005, according to its most recent abridged accounts. It appointed Davy Stockbrokers in recent weeks to examine its strategic and fundraising options.
Informed sources say Alimentary is moving in the direction of an initial public offering on the Alternative Investment Market in London and IEX market in Dublin.
But other fundraising options have not been ruled out, they say, citing the possibility of a private placing or a strategic partnership with a larger player.
The company itself declined to comment yesterday. However, it is likely a definitive decision will not be made for some months yet.
Alimentary already has a licensing agreement with Procter & Gamble and it may seek to deepen its relationship with that group. The amount of money that it hopes to raise is not yet clear.
It last raised money in June 2006 and said in official filings last December that it expected to receive royalty payments and research funding within months.
Alimentary was formed in 1999 by a group of researchers at the Alimentary Pharmabiotic Centre in UCC to capitalise on the €20 billion market for drugs to treat gastro-intestinal diseases.
Shareholders include chief executive Dr Barry Kiely, Prof Charles Daly and Prof Timothy Dinan. UCC also has a small stake in the business.
