Scientists want to bring in £ 150 million for biotech deal: Oxford Nanopore is now joining the London listing
A trio of British scientists face a big payday after their biotech company reveals plans for a blockbuster float.
Oxford Nanopore will list its shares in London in the second half of 2021 on one of the most anticipated public debuts in years.
The company is valued at around £ 2.3bn by a top investor, but analysts believe that could easily exceed £ 4bn.
Biotech Champion: Oxford Nanopore will list its shares in London in the second half of 2021 on one of the most anticipated public debuts in years. Analysts believe it could top £ 4 billion
This means founders Gordon Sanghera, Hagan Bayley, 70, and Spike Willcocks, 44, and their families could put up to £ 150 million between them.
The company specializes in DNA sequencing and has developed a pocket-sized device that could revolutionize healthcare.
His services have also been in great demand during the pandemic as scientists attempt to detect and track mutations in Covid-19.
The time and place of the swimmer has been the subject of speculation for years. Sanghera said Oxford Nanopore’s decision to pursue an initial public offering (IPO) followed a “pivotal year” in which the coronavirus “demonstrated the importance of life sciences”.
He said, “We believe that going public is the beginning of the next phase of our journey. Access to deeper international pools of capital would support our ambitious growth plans and enhance our ability to innovate and scale our manufacturing and trading functions. “
Payday: Founder Gordon Sanghera will pocket £ 62 million
During the Covid crisis, Oxford Nanopore technology was used to identify one fifth of the virus genome by scientists in 85 countries.
It believes its DNA and RNA tracking technology can be used in a variety of other areas, including the rapid detection of other diseases, virus immunity testing, and tumor sequencing.
The IP Group, which owns a 15 percent stake, has implied that Oxford Nanopore has a total business value of about £ 2.3 billion.
However, Berenberg analysts believe the company could “comfortably” sell for £ 4 billion.
That would mean 60-year-old managing director Sanghera could see a 1.6 percent stake worth more than £ 62 million.
Willcocks, chief of business development, could make a paper fortune of £ 34 million and co-founder Hagan Bayley, professor of biochemistry, £ 32 million.
Bayley’s ex-wife, Orit Braha, is also said to be receiving nearly £ 22 million, according to Companies House.
The trio started Oxford Nanopore in 2005 as a spinout from Oxford University. Its technology is based on moving DNA samples through tiny holes – so-called nanopores – and measuring how they react to electrical currents.
Co-Founder: Hagan Bayley (left) will pocket £ 32 million while Spike Willcocks (right) is set to pocket £ 34 million
It provides rapid gene sequencing services to laboratories studying infectious diseases, cancer, plants, food, and the environment.
The portable device – Minion – for these types of tests is the size of a smartphone and eliminates the need for heavy equipment. It has been used in the field to sequence strains of the Ebola virus, Zika, and Covid-19.
Disgraced fund manager Neil Woodford was among Oxford Nanopore’s supporters before being ousted from its funds, but investors in its flagship fund will miss out on gains from the listing later this year.
Administrators sold its 12 percent stake to US company Acacia for £ 20.8 million last year. These stocks are now believed to be worth at least £ 80 million.
Investor eyes benefit
Start-up funder IP Group could receive £ 500m net if Oxford Nanopore floats.
The investor, who helps commercialize ideas from universities, owns a 15 percent stake which he values at around £ 340.3m, meaning Oxford Nanopore is worth around £ 2.3bn.
Analysts believe the price could climb to £ 4bn, which means the IP Group could hit up to £ 516m.
IP claims to have helped start more than 300 companies with assets valued at £ 1.2 billion.
Previous achievements like Ceres Power and Hinge Health.