OGS turns back on US....
By Ben Hirschler, European Pharmaceuticals Correspondent
PARIS, Nov 12 (Reuters) - British biotechnology company Oxford GlycoSciences Plc (LSE: OGS.L - news) said on Tuesday it had narrowed its hunt for acquisitions to Europe and Britain, and hoped to clinch a deal in the cancer field by early next year.
Chief Executive David Ebsworth, who is sitting on one of the largest cash piles in the European biotech sector, said at an SG Cowen healthcare conference that a deal with another European company was likely to be simpler to conclude than one with a U.S. firm.
"As we look at companies to come together with we are focusing strongly on Europe and the United Kingdom. We think there will be less complexity in a deal that is at that level rather than jumping across the pond and trying to do an acquisition (in the U.S.)," he said.
The company said in September it was looking at acquiring individual products or whole companies in the UK, Europe or the United States. Since then Ebsworth said some potential partners had dropped out of the picture, although he was still talking to a total of three potential partners.
OGS was taking a considered approach to M&A but Ebsworth said he would like to reach a deal soon, in order to build up the emerging oncology side of the business.
"I would hope to do a deal sometime in the first quarter (of 2003) but if I don't find it then I will keep looking," he told Reuters.
Ebsworth, who took over as CEO in July, recently restructured the group by organising it into three units with separate profit and loss accounts -- proteomics, inherited storage disorders and oncology. Within this, oncology will be the focus of future strategic investment.
OGS, whose shares have crumbled in the past two years as enthusiasm about gene- and protein-based medicine has faded, had cash reserves of 153.4 million pounds at June 30. Ebsworth aims to use this to fill the drug pipeline.
M&A has become an increased focus for biotechnology executives this year following a meltdown in share valuations and an investor flight from the sector which has left a number of firms strapped for cash -- and vulnerable to an approach from cash-rich rivals like OGS.
The company made a first-half loss of 19.5 million pounds, up from 7.2 million a year earlier, reflecting increased research and development spending and manufacuring costs ahead of the launch of its first product, Zavesca, in 2003.... |
