Bioglan Puts Itself Up for Sale after Further Pounds 11m Write-Off
Foley, Stephen, The Independent (London, England)
BIOGLAN PHARMA, the biotech firm fighting for survival in the face of mounting debts, has again failed to get its results approved by its auditors.
The company restated its most recent interim results yesterday, revealing an additional pounds 11m write-off and raising doubts over the future of a key marketing deal. But the shares rose a penny to 12p after Bioglan said it has received a number of takeover approaches, and formally put itself up for sale with the launch of a strategic review. It could also seek a strategic investment by a third party.
The company is in talks with its bankers, led by Royal Bank of Scotland, which have given it until 30 November to reach a deal over the restructuring of its short-term debt.
The latest estimate of the company's losses in the six months to 30 September is pounds 45.6m. KPMG, the auditors, forced Bioglan to write off goodwill relating to a deal with Medicis, the US pharmaceutical firm. Bioglan is now unlikely to exercise an option to acquire products from Medicis, and the deal will be wound up. …