In a surprise move, Chiroscience and Celltech - UK's strongest biotechnology companies - announced their £680m merger last week. Celltech Chiroscience will be the UK's largest biotechnology company and the largest pharmaceuticals company after AstraZeneca. The merger is intended to give greater critical mass allowing the two companies to compete with global pharmaceuticals groups. The two groups spend £51m on research and development each year - a fraction of Glaxo Wellcome's £1.1b, but enough to compete in selected areas.
Celltech's strengths are in molecular biology and Chiroscience's lies in its gene-based technologies. Dr Padfield, the chief executive of Chiroscience, is to leave the group on completion of the deal to join Nycomed Amersham, the medical equipment company. Celltech's Peter Fellner will be chief executive of the combined company.
The biotechnology sector received another boost last week when Pharmacia & Upjohn, the pharmaceuticals company, agreed to pay £455m for Sugen, a well-respected San Francisco cancer therapy company headed by a British aristocrat. Stephen Evans-Freke, the son of the 11th Baron Carbery, is set to make about £17m from the company he founded only in 1991. International Biotechnology Trust, managed by the Rothschild Bioscience Unit will make £14.3m, almost trebling its investment.
Sources and References
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Chiroscience discovers merger formula
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