herald...attracts interest

BIOTECHNOLOGY company Peptech has told shareholders the group is in discussions with private equity firms regarding its possible takeover.

At yesterday's annual meeting, Peptech chairman Mel Bridges said unsolicited external approaches for both acquisition and strategic investment had been submitted recently from top-tier, global and industry-specialised firms.
Mr Bridges said that although he wasn't initially expecting the interest, he understood why it had come.

"The interest from private equity did come out of left field for the company but, given where we are at, it's not really a surprise," he said.

"Historically, private equity firms haven't normally looked at the biotech sector, yet the recent interest we've had has been from genuinely big, global companies.

"However, what these companies already do have are life science divisions, and now they are starting to complete large investments in the life science sector."

Mr Bridges said the outside interest marked a form of recognition long overdue for the company.

"What's been very frustrating for the Peptech board is (that) the real value of the company just doesn't seem to have resonated with the market," he said.

"Even recently, a drug we've been looking at in pre-clinical trials absolutely outgunned the three major products which are on the market and generating $US10 billion ($A12.87 billion). It's a bit like 'Hello, why don't we get the local market recognition?'

"These offers are finally a mark of recognition, and we're willing listen."

To help the company assess the takeover offers, Peptech is to appoint specialist corporate advisers who may investigate other options.

Peptech chief executive John Chiplin said the company was also expecting to make further takeovers of its own after two successful purchases last year.

"We intend to aggressively move forward with further acquisitions," Dr Chiplin said.

AAP
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