ML Labs looking at strategic options

UK biotechnology firm ML Laboratories is to undertake a strategicreview, with the help of bankers NM Rothschild, in a bid to optimize shareholder value. The company's chairman, Kevin Leech, said that "it is of great concern to the board that our current share price does not...reflect the value of our exciting portfolio of products and technologies," hence the review. The firm's shares are hovering just over the L1 ($1.50) mark at the moment and are well down on their 52-week high of L2.70.

As a result of the review, ML's planned Nasdaq flotation of Innovata Biomed, its respiratory subsidiary, has been put on hold. Analyst estimates last year valued Innovata in a range of $100-$500 million, but the upper end of this seems excessive compared with the current L163 million market capitalization of ML as a whole.

The news of the review was revealed as ML reported a net loss of L11.7 million for the year ended September 30, 2000, compared with a loss of L6.9 million for the previous fiscal year. The company noted that L1.4 million of the losses related to its acquisition of Cobra Therapeutics (Marketletter February 14, 2000), though the latter helped ML's turnover rise to L11.9 million.