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Deal Maker of the Year Awards 2013 WINNER - JOHN BURT
DEAL: PolyTherics Limited merges with Antitope Limited’
NAME: John Burt COMPANY: PolyTherics Ltd WEBSITE: www.polytherics.com
DEAL OVERVIEW Q
Please summarise the transaction In July 2013, PolyTherics executed
simultaneous financing and acquisition transactions in connection with the merger of the PolyTherics business with Cambridge- based pharmaceutical R&D service company, Antitope. PolyTherics issued £13.5 million of new equity in the financing round, which was led by Imperial Innovations and brought in new investors Invesco Perpetual alongside significant support from existing investors.
Q
What was your role within the transaction
As CEO of PolyTherics, I led both the financing and M&A processes from opportunity identification through to completion. Since the merger of PolyTherics and Antitope, I continue to lead the expanded group which now spans three sites in the UK in London, Cambridge and Coventry and providing services and technologies to pharmaceutical and biotechnology companies to enable the development of better biopharmaceuticals.
Q difficulties presented What were the challenges or
Managing parallel financing and M&A transactions and the associated teams of lawyers, corporate finance advisors and due diligence experts was a significant challenge, whilst at the same time, continuing to manage the core business.
Having the support of my Chief Operating Officer, Sally Waterman, both on the transactional side and in continuing to manage the business ensured that all activities were well planned and executed. Excellent legal support from Field Fisher Waterhouse, with a deal team led by Bradley Theobald, ensured that the two corporate transaction processes remained aligned and moving to completion in an effective manner.
Q
How does the transaction fit in with your overall business strategy
PolyTherics is pursuing a two-prong growth strategy to establish itself as one of the leading providers of value-adding and proprietary services and technologies within the biopharmaceutical R&D sector. Combining organic growth through an expanded technology development, as exemplified by our ThioBridge technology for the creation of superior antibody-drug conjugates (ADCs) for cancer therapy, with the addition through M&A of additional service and technology offerings is driving a rapid growth in our top-line revenues as well as establishing critical mass for the business.
Q
What are your plans following the transaction
Integration of the PolyTherics and Antitope
UK
Q
How were the challenges or difficulties overcome
businesses is progressing extremely well and we are seeing the benefits of our broader service and technology offering leading to cross-selling opportunities with our target pharmaceutical and biotechnology company customers. We are not resting on our laurels and continue to drive the growth of the business along both growth paths. As we establish our position as a ‘one-stop shop’ for services and technologies in the biopharmaceutical sector and enjoy the support of our investors, which now runs from the institutional funds managed by Invesco Perpetual to high-net worth individual investors, we will continue to explore opportunities to continue the growth and enable our investors to enjoy a return on their investment.
What are your thoughts and predictions within your sector for 2014 and beyond
Q
The significant biotech IPO activity in the US will drive increased investor interest in this sector, but more risk-averse European investors will look for business models that provide significant potential upside but with a lower risk profile than has historically been demonstrated by UK and European biotech companies.
Whilst the economy moves towards a period of growth, cost pressures will continue to bear heavily on the pharmaceutical industry.