(Reuters) – Motif Bio, which is working on a range of antibiotics, is planning to raise at least 4 million pounds ($6 million) – and potentially up to 16 million – through a stock market listing in London.
The plan shows increased interest in badly needed new antibiotics that are essential to counter the spread of “superbug” bacteria.
Companies have for many years been reluctant to invest because of poor returns, but recently the promise of improved incentives has started to change the mood as demonstrated most vividly by Merck & Co’s decision to acquire Cubist for $9.5 billion in December.
Motif Bio said it was in talks with investors ahead its move to list on the AIM market as it seeks funding to advance its experimental drugs.
If it raises the full 16 million pounds, either at or after flotation, the business is expected to be worth 45-60 million pounds.