biotechs chase first billion-dollar baby

the age

By Helen Westerman and Rebecca Urban
October 5, 2005
Biotechs chase first billion-dollar baby

PSIVIDA has joined the ranks of ambitious Aussie biotechs chasing the highly coveted $1 billion market capitalisation.

The Perth-based nanotechnology outfit yesterday unveiled details of its $US104 million ($A139 million) scrip acquisition of Control Delivery Systems, a revenue-making private business that specialises in drug delivery technology.

According to pSivida boss Gavin Rezos, the acquisition will provide a US base, which is crucial if he is to grow the company's market capitalisation from its existing $196 million to $1 billion.

It is a number that has been promised to hopeful investors of several biotechs now. Peptech boss Mel Bridges told the market that he would build a $1 billion empire by 2010. However, Rezos reckons he can do it within two years, maybe less. But it is likely that he'll have exited the driver's seat by that stage.

While Rezos plans to run the merged entity from Australia after the acquisition is complete — by the end of December — the search has started for a new chief executive to be based at the company's new Boston headquarters. The ideal candidate will have an existing profile with North American investors and the US Food and Drug Administration.

Rezos is expected to step into a non-executive position.