ReNeuron: Going Private
VCs don't usually buy back portfolio companies once they've floated. But Merlin's offer to take struggling stem-cell group ReNeuron back into the private realm gives shareholders a slightly less unattractive deal than liquidation, even though the group is still valued below cash. More importantly, it gives ReNeuron another shot.
You may also be interested in...
More than a third of UK biotechs are short of cash, and those that haven’t already found creative means of monetizing their assets have run out of time.
When ReNeuron Ltd. announced its intention to float on London's Alternative Investment Market (AIM) in July, most onlookers gave a sceptical laugh. But the subsequent IPO, although small, showed that even risky, pre-clinical bets can float--if they're priced low enough.
Unusually, the VC investors in UK-based Microscience have announced they will pump a further £10 million into the vaccine developer as it tries to enter the lukewarm public markets with a summer IPO on London's AIM. With underwhelming debuts from Ark Therapeutics and Basilea Pharmaceutica in Europe and dramatically reduced offering prices in both Europe and the US, Microscience's investors' show of solidarity may make a necessary difference. But in the end, it's still all about the valuation.