Norway: Photocure to float cancer arm

Flotation

Photocure ASA, a specialist in photodynamic treatments for cancer, is to de-merge its drug delivery arm PCI Biotech and float it on the Oslo Stock Exchange.

PCI Biotech has developed a method for the light-directed delivery of drugs directly into tumour cells which it claims has the potential to enhance the efficacy of currents The technology, photochemical internalisation (PCI), can be used both for existing anticancer drugs and for emerging treatments, such as gene therapy using RNA silencing.

The company is splitting because PCI’s focus on drug delivery is distinct from Photocure’s existing and future business, and the de-merger will give PCI Biotech the best possible opportunity to develop its drug delivery technology.

PCI has been a subsidiary of Photocure since 2000. It says it has built a solid technology platform, generated significant preclinical data and established a strong intellectual property position. It is planned to start the first clinical proof of concept study in 2008 to evaluate the use of PCI's technology to deliver an established chemotherapy.

PCI’s business strategy is to create value by improving the therapeutic profile of drugs, and capture value through licensing deals with pharmaceutical and biotechnology companies.

Photocure currently owns 91.4 per cent of the shares in PCI Biotech AS. The remaining shares are owned by the Radium Hospital’s Research Foundation, and the employees of PCI Biotech.

As a result of the de-merger, Photocure shareholders will receive one share in PCI Biotech for every share in Photocure. The plan is to strengthen the financial base of PCI Biotech by raising additional capital through a share issue in connection with the listing.