Drug development company Destiny Pharma rose 38.5% in its first day on the AIM stock exchange, raising £15.3 million at a placing price of 157p per share. At the peak of the day, shares were priced at as much as 227p, before ending on a healthy 217.5p.
Destiny is developing drugs to protect against drug-resistant bacteria such as MRSA, which kill an estimated 700,000 people each year. Taking the focus off traditional antibiotics, it produces drugs that reduce the number of hospital-acquired infections by around 60 percent.
In addition to raising an impressive amount of money, Destiny Pharma also have a special status which allows its lead drug (exeporfinium chloride) to be potentially ‘fast-tracked’ by the US regulatory authority – which may allow a more rapid progression to the marketplace.
The company are the second life sciences group this year to join the London Stock Exchange, which is currently struggling to reproduce the commercial success of the biotech sector in the US.
This incredible round of funding has no doubt made an improvement in the way life sciences are perceived in the London Stock Exchange, especially in light of the company entering a deal with China Medical System Holdings Ltd. The Hong Kong listed firm invested £3m as part of the deal, that will see them hold exclusive rights to Destiny Pharma in China, and other Asian countries (excluding Japan). The deal is expected to help Destiny Pharma in reaching eastern markets, helping with development and commercialisation.