Simplified structure and increasing investor interest in biopharmaceutical sector plus concerns about antibiotic resistance provide growth opportunities
Bioquell, a UK-based provider of specialist microbiological control technologies, is to carry out a strategic review of its biological contamination control business, which could potentially lead to the sale of all or part of the Group.
Announcing the review, the company said its range of products and services present the potential for 'significant profitable growth internationally'. Bioquell suggested that such revenue growth 'could be achieved with a partner in a number of ways including co-promotion, distribution, joint ventures or by business combination'.
The company also said that prospective partners 'may attribute a greater value to the Bioquell Group than is currently afforded by the stock market'. To help realise additional value for Bioquell shareholders, Investec has been appointed to assist the Board in evaluating the best way to approach this.
'The Board believes that Bioquell has a secure future as an independent business and so will only engage with third parties willing to provide value to Bioquell’s shareholders by recognising and supporting the Group’s significant growth potential,' the firm said.
The Board believes that Bioquell has a secure future as an independent business
Earlier this month, Bioquell sold TRaC Global, a specialist testing and certification company, for £44.5m. The sale unlocked substantial value for shareholders and also significantly simplified the Bioquell group structure, the firm said.
Given this simplified structure, together with increasing investor interest in the bio-pharmaceutical sector and heightened concerns of governments around the world in relation to antibiotic resistance, the Board has decided to carry out a strategic review of the company’s remaining biological contamination control business.
Following a major product development programme which is now substantially complete, Bioquell said it has a leading position in contamination control technologies which are used internationally in three sectors: life sciences, healthcare and defence. These technologies include: the provision of aseptic facilities for biologics and biotech customers; products and services to assist hospitals combat hospital acquired infection and antibiotic resistant bacteria; and the supply to manufacturers of military vehicles and fixed installations of environmental control systems, including chemical, biological, radiological and nuclear specialist filtration systems.
If the review concludes that Bioquell should remain an independent business, the Board would return a majority of the proceeds from the disposal of TRaC to Bioquell shareholders.
At the end of April, Bioquell had net cash of £4m on its balance sheet, which excludes the £43.9m of net proceeds from the disposal of TraC, which completed on 7 May.