Who says it’s hard to raise cash in a bear market? Strakan Group Plc, the UK pharmaceutical company, has just completed a financing round worth £30.5m, significantly more than the company had hoped to raise.
Strakan’s initial target was £20m. The funds will be used to advance the development of Residerm, a technology aimed at acne treatment. Alongside Residerm, which is due to be registered in Europe, Strakan works on transdermal drug delivery medications and skin adhesives.
The cash injection, unusually generous for a biotech company in the current market climate, will give Strakan greater room for maneuver as it builds towards an IPO.
Warburg Pincus, the global private equity firm, made the largest contribution to the deal, investing £21.5m. 3i has signed up for £5m, and LMS Capital contributed £2m. Both firms have backed Strakan in previous financing rounds. Private investors provided another £2m.
Strakan was set up in 1995 and employs some 75 staff in the UK, Japan and the US.