Oxford Molecular Launches Rights Issue For US Purchases

UK biotechnology company Oxford Molecular has launched a one for sevenrights issue at 360 pence ($5.84), which should fund two acquisitions the firm is making in the USA. It is acquiring the Genetics Computer Group and MLR Automation, both computer software businesses, which OM says will significantly strengthen its core business of integrated drug design software and the provision of contract research services. The rights issue should generate L30.4 million ($49.3 million) net of expenses.

OM is paying $20 million for GCG, and $4 million for MLR. Tony Marchington, OM's chief executive, commented that the deals enhance OM's presence in the USA, which is an important growth market. He added that OM will be able to "draw on the technical knowledge in bioinformatics which GCG has gained through its close association with leading academics and pharmaceutical companies."

Collaboration With Astra In addition to the two acquisitions, OM has entered into a collaborative agreement with Astra Arcus, a subsidiary of the Swedish pharmaceutical company Astra. The two firms will work together to develop desktop software for research scientists.