Bioglan rescue bid in final stage

The talks will secure a deal believed to give Quintiles a 30% share in Bioglan through new share issues and would force founder and chief executive Terry Sadler to dilute his 35% holding in the company.

The British biotechnology company saw its financial health fail last year when it attempted to acquire US competitor Bristol-Myers Squibb’s skincare operation for $765m.

The takeover bid failed, leaving Bioglan indebted. It still owes £105m to a consortium of banks led by Royal Bank of Scotland.

Earlier this week, the British company sold its Danish generic drug makers to a Scandinavian holding company for £1.2m, the proceeds of which will be used to pay off creditors. The buyer also agreed to take on the Danish subsidaries’ £500,00 debts.

Bioglan, whose market capitalisation was £577m at its peak, is now worth only £2m.

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