Cantab's Strong Financials A Platform For New Strategy

The successful completion of a L25.7 million ($17.6 million)institutional placing in July 1996, and a L24 million licensing agreement with SmithKline Beecham shortly after the placing, are two factors that in 1996 strengthened UK firm Cantab Pharmaceuticals' financial position. At December 31, 1996, Cantab had a closing cash balance of L36.27 million, compared to L11.17 million a year earlier.

The company has since substantially consolidated its financial and commercial position through entering into a joint venture with Marie Curie Cancer Care to establish a new company, Phogen (Marketletter March 10), and by forging a development and licensing agreement with Glaxo Wellcome regarding Cantab's DISC HSV vaccine for the treatment and prevention of genital herpes (see also page 28).

At the end of last year the firm's share price stood at L6.65. By the end of February it had risen to around L9.35 following the news of the deal with Marie Curie Cancer Care, and is currently at around L10.121/2, having risen to L10.721/2 after the deal with GW was announced. The firm's market capitalization on March 17 was L168 million.