Transgene looking to raise 80 million euros

Transgene, the French biotechnology company, is launching a share issueto increase its capital, with its main shareholder, BioMerieux-Pierre Fabre, expected to increase its stake in the company. Transgene will offer over 5.3 million new shares to investors at a price of 15 euros, bringing the total number of shares to 11 million, and the issue is expected to raise 79.7 million euros ($71.5 million).

BioMerieux-Pierre Fabre currently has a 52.8% stake in Transgene and this may increase to about 63.5%, although sources close to the company said this might only happen if demand for new shares is inadequate in a sluggish market. Since March last year, Transgene's share price has fallen considerably and is currently hovering around the 14 euro mark.

The share issue is taking place just a few weeks after Transgene announced its intention to refocus its R&D efforts on cancer treatments. Gilles Belanger, the firm's new director general, said all efforts would now be focused in this area with the aim of launching a new product on the market as soon as possible.