British pharma outfit to be spun out on the London stock market

Michael Bow
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US PHARMA company Alere yesterday announced plans to float its UK medical testing subsidiary BBI Diagnostics on the London stock market next month.

New York listed Alere, which makes medical products that test for various diseases, will sell about 25 per cent of the company to institutional investors in the sale.

BBI, which made about $87m (£52m) of revenue last year, started life in 1986 manufacturing gold nanoparticles which are used in a variety of medical experiments.

“This listing will be a major strategic step for BBI Diagnostics. As an independent public company, we believe we will be in an even stronger position to strengthen and leverage our relationships with customers, develop and commercialise new products and services, and expand our geographic presence,” incoming chief executive Lyn Rees said.

BBI also announced plans to borrow £60m – three times its normal normalised earnings before interest, taxes, depreciation and amortization – from a new credit facility announced yesterday.

Jefferies is leading the listing, with Berenberg and Investec also on the deal. Alere stock fell around one per cent in New York yesterday.