Three industry and financial sources said Societe Generale (SOGN.PA) will lead the IPO and Fortis (FOR.BR), co-manager and an analyst meeting will be held next week .
The Paris-based company attempts to raise funds will come at a time that the credit crisis-hit economies are becoming the doldrums, and investors are gradually renewed interest in taking a gamble. [ID: nLDE6031JC] [ID: nLDE60P1R4]
AB Science is interested in human and animal health. It sells veterinary cancer treatment, known generically as Masitinib, Europe, pending its clearance United States and performs final testing of several clinics using the same compound on humans.
Revenues from its drug cons animal health and its development pipeline relatively advanced drugs for humans, which also contains several compounds of mid-stage trial, should give investors some clarity on where they are about to put their money in.
“There will be an investment of 25 million euros from shares held by existing investors and a capital increase of 25 million euros. In all, 50 million euros will be placed on the market,” saidone financial source.
“It (the operation) will happen in March rather early, it depends on market conditions,” the source said, adding shareholders include Mulliez family, owner of retailer Auchan, Casino (Casp. PA) Executive Chairman Jean-Charles Naoury and Oddo Securities head Philippe Oddo.
AB Science founder Alain Moussy has not responded to an email and the company did not return telephone calls.
Reasons personal
Moussy formerly head of mergers and acquisitions in the world’s second largest retailer Carrefour (CARR.PA), but personal reasons prompted him to establish a foundation Afirmm in 1999 to meet mastocytosis, a rare disease caused by mast cells of too many who are part of the immune system.
Two years later, after meetings with scientists, specialists and pharmaceutical companies, it creates AB Science.
Based in Paris, AB Science is developing drugs that block the tyrosine kinase (TK) – proteins that act as chemical messengers in cells, signaling to grow – to target cancer, inflammatory diseases of the nervous system.
His treatment of mast cell tumor in dogs, Masivet brand in Europe, became the first chemotherapy approved worldwide for the animals in 2008. If approved in the United States, the drug will be appointed Kinavet and compete with (PFE.N Pfizer) Palladia.
As a potential drug for humans, the compound is Masitinib end-stage clinical trials or Phase III in three types of cancer – tumor gastro-intestinal anastomosis, pancreatic cancer, where it is added to (LLY.N Eli Lilly chemotherapy Gemzar), and mastocytosis. There are plans for Phase III studies on other cancers and inflammatory diseases.
TK blockers available include Novartis (NOVN.VX) Gleevec, OSI Pharmaceuticals (OSIP.O) Tarceva and AstraZeneca (AZN.L) Iressa.
There are no financial details available on the Scientific AB. So far, it has financed its drug development through capital increases of about 40 million euros, said a source.