London, UK, 7 September 2015. Shield Therapeutics, a specialty pharmaceutical company focused on the development and commercialisation of secondary care-focused pharmaceuticals, today announces its intention to proceed with an Initial Public Offering and fundraising of Shares to certain institutional and other prospective investors (the "Offer") to raise gross proceeds of up to £110 million.
Application will be made to the UK Listing Authority and the London Stock Exchange for all of the issued and to be issued Ordinary Shares in the Company to be admitted to the premium segment of the Official List and to trading on the London Stock Exchange's Main Market for listed securities ("Admission"). It is expected that Admission will become effective and that unconditional dealings for normal settlement in the Ordinary Shares will commence on or around 9 October 2015.
Highlights
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Specialty pharmaceutical company with major market opportunities: Focused on the development and commercialisation of secondary care-focused pharmaceuticals
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Two late-stage products in development: Feraccru, a novel and effective oral pharmaceutical product for the treatment of iron deficiency anaemia ("IDA") that is currently undergoing a marketing authorisation assessment in Europe; and PT20, a novel phosphate binder that is being developed for the treatment for hyperphosphatemia related to chronic kidney disease ("CKD")
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Late-stage company with near-term revenue potential: The directors of Shield (the "Directors") expect the company to receive European marketing approval for Feraccru in the first half of 2016 and commence Phase 3 clinical trials of PT20 in 2016
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Potential for strong cash generation: The Directors anticipate near-term revenues with high gross margins following the expected launch of Feraccru in Europe in 2016 and a relatively modest level of future R&D spend going forward
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Opportunity to create operational leverage and value via own sales infrastructure: Feraccru and PT20 are intended to be sold directly by the Company using its own central infrastructure and field-based sales representatives and medical science liaisons in the major markets of the EU and in the US
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Strong intellectual property protection: A suite of strong intellectual property, including key patents in major markets, supports each product. With marketing approval in the EU and US, Feraccru will also benefit from data and marketing exclusivity in the EU and data exclusivity in the US
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Experienced board and management team: Extensive expertise in the pharmaceutical and biotechnology industry with successful track records of commercialisation and value creation.
Commenting on today's intention to float announcement, Carl Sterritt, CEO of Shield Therapeutics, said: "Shield Therapeutics is at a very exciting stage in its development and this IPO marks another important step in the maturity of the Group as we move from a development focus to one that has revenue generation at its heart. We have a European application for marketing approval of Feraccru currently under review by the European Medicines Agency and have also completed a successful pivotal phase 2b study with PT20. The IDA and hyperphosphatemia markets are both large and growing and we believe each of our late-stage products has the potential to meet a significant unmet need for prescribers and patients. This IPO will raise the additional funds needed to continue the development and commercialisation plans of our key products as we work to build a world-leading independent specialty pharmaceuticals business based in the UK."
Commenting on today's announcement, Dr Andrew Heath, Non-Executive Chairman of Shield Therapeutics, added: "Shield Therapeutics is operating in a large and growing market with pharmaceutical products in late-stage development that have the potential to make a meaningful impact on society. Shield's Board and executive management team has a strong track record in both commercialising pharmaceuticals and creating value for shareholders. We look forward to joining other highly respected pharmaceutical peers on the London Stock Exchange."
Overview of the Offer
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The Offer will comprise new Shares to be issued by the Company
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The Company anticipates raising gross proceeds of up to £110 million
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The Company's clear objective is to use its existing cash balances and the net proceeds from the Offer to continue the development and commercialisation programmes of both Feraccru and PT20 to a stage where they will generate significant revenues
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Certain existing institutional shareholders will be subject to lock-up arrangements on existing holdings for 180 days following completion of the Offer
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The Directors and Management will be subject to lock-up arrangements for 365 days following completion of the Offer
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Under the Offer, the Shares will be offered (i) to certain institutional investors in the United Kingdom and elsewhere outside the United States in reliance on Regulation S under the US Securities Act of 1933, as amended (the "Securities Act") and in accordance with locally applicable laws and regulations; and (ii) in the United States only to investors that are both "Qualified Institutional Buyers" as defined in Rule 144A under the Securities Act and "Major US Institutional Investors" as defined in Rule 15a-6 under the US Securities Exchange Act of 1934, as amended, pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act.
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In relation to the Offer, Investec Bank plc (''Investec'') and Canaccord Genuity Limited (''Canaccord'') are acting jointly as sponsors and Investec, Canaccord and RBC Capital Markets (''RBC'') are acting jointly as bookrunners for the Company.