Monday, June 25, 2001
The $66.6 million raised by four European companies last week may have looked paltry compared to the $895 million raised in the U.S. But the week's biggest deal, the £25 million ($35.1 million) IPO in the U.K. by GW Pharmaceuticals helped to counter-balance Cerep's decision to pull its follow-on in France and Zentaris' decision to pull its German IPO.
GW, which is developing cannabis-based therapies for multiple sclerosis, cancer pain and rheumatoid arthritis, raised £9 million more than it had hoped for when it filed on May 15. The company, which expects to begin trading on London's AIM market on June 28, sold 13.7 million shares at 182p, giving it a market cap of £175 million ($246 million).
The European markets have shown decidedly mixed signals to would-be biotech fundraisers, now having blessed a big follow-on by NicOx (NM:Nicox), which raised E69.8 million ($61.5 million) in a follow-on in May, as well as the GW deal.