By Ben Deighton
LONDON, Nov 14 (Reuters) - Vernalis Plc on Friday appointed the former management team from Acambis to head the British biotechnology company, and the group's incoming Chief Executive promised significant changes.
Ian Garland -- who headed vaccine maker Acambis when it was sold to Sanofi-Aventis SA for 285 million pounds ($422 million) earlier this year -- said Vernalis would grow by acquisitions under his leadership.
'A key element of my strategy will be to grow Vernalis and it won't necessarily be entirely around what it is today,' Garland told Reuters in a telephone interview.
'I think we are looking for opportunities in a market where there are lots of opportunities outside Vernalis as well,' he said, referring to possible acquisitions.
He said it was premature to speculate in detail about the company's strategy, or whether it would move away from biotech.
However, when asked if the shift in investment capital away from the biotechnology model of regularly needing to raise cash would mean a shift in focus for the company, Garland said:
'We've got to look and make sure that our strategy then marries up with where investors' interests are. You have to then have a strategy that takes into account constraints in the capital markets.'
Investors welcomed the appointment of Garland, who will take up his appointment next month. He will be joined at Vernalis by the former Chief Financial Officer from Acambis, David Mackney, who becomes finance chief at Vernalis from February.
By 1636 GMT, shares in the group were 14 percent higher at 2.85 pence.
Piper Jaffray analysts said Garland and Mackney's track record increased the possibility of Vernalis taking part in consolidation in the sector -- something many investors have been pushing for.
'There's a lot of companies out there that have got very distressed prices and it would make sense for someone to try to put them all together, and he (Garland) is probably a good man to do that,' said analyst Robin Davison at Edison.
Andy Smith, a healthcare portfolio manager at Axa Framlington, which has a stake in Vernalis, said privately-owned Astex would be a good fit with Vernalis.
The company, which considered a stock market listing last year, shares the same Chairman as Vernalis, Peter Fellner.
Garland has worked closely with Fellner, who was Chief Executive of Celltech when Garland worked there as Chief Operating Officer. Fellner was also chairman of Acambis when Garland worked there.
'It's a well worn path in the US for a public company that's had a bad track record even a main drug failed and ends up with some early stage stuff for a good private company to reverse into that public, effectively, shell,' Smith said.
Vernalis' Chief Financial Officer, Tony Weir, had quit in October to take up the finance post at Summit Corp Plc.
Vernalis suffered a setback last year with the surprise rejection of its headache drug Frova for the preventative treatment of menstrual migraine.
(Reporting by Ben Deighton; Editing by Simon Jessop and Andrew Macdonald) ((ben.deighton@reuters.com; +44 207 542 7009; ben.deighton.reuters.com@reuters.net).
($1=.6753 Pound)
Keywords: VERNALIS/
COPYRIGHT Copyright Thomson Reuters 2008. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
LONDON, Nov 14 (Reuters) - Vernalis Plc on Friday appointed the former management team from Acambis to head the British biotechnology company, and the group's incoming Chief Executive promised significant changes.
Ian Garland -- who headed vaccine maker Acambis when it was sold to Sanofi-Aventis SA for 285 million pounds ($422 million) earlier this year -- said Vernalis would grow by acquisitions under his leadership.
'A key element of my strategy will be to grow Vernalis and it won't necessarily be entirely around what it is today,' Garland told Reuters in a telephone interview.
'I think we are looking for opportunities in a market where there are lots of opportunities outside Vernalis as well,' he said, referring to possible acquisitions.
He said it was premature to speculate in detail about the company's strategy, or whether it would move away from biotech.
However, when asked if the shift in investment capital away from the biotechnology model of regularly needing to raise cash would mean a shift in focus for the company, Garland said:
'We've got to look and make sure that our strategy then marries up with where investors' interests are. You have to then have a strategy that takes into account constraints in the capital markets.'
Investors welcomed the appointment of Garland, who will take up his appointment next month. He will be joined at Vernalis by the former Chief Financial Officer from Acambis, David Mackney, who becomes finance chief at Vernalis from February.
By 1636 GMT, shares in the group were 14 percent higher at 2.85 pence.
Piper Jaffray analysts said Garland and Mackney's track record increased the possibility of Vernalis taking part in consolidation in the sector -- something many investors have been pushing for.
'There's a lot of companies out there that have got very distressed prices and it would make sense for someone to try to put them all together, and he (Garland) is probably a good man to do that,' said analyst Robin Davison at Edison.
Andy Smith, a healthcare portfolio manager at Axa Framlington, which has a stake in Vernalis, said privately-owned Astex would be a good fit with Vernalis.
The company, which considered a stock market listing last year, shares the same Chairman as Vernalis, Peter Fellner.
Garland has worked closely with Fellner, who was Chief Executive of Celltech when Garland worked there as Chief Operating Officer. Fellner was also chairman of Acambis when Garland worked there.
'It's a well worn path in the US for a public company that's had a bad track record even a main drug failed and ends up with some early stage stuff for a good private company to reverse into that public, effectively, shell,' Smith said.
Vernalis' Chief Financial Officer, Tony Weir, had quit in October to take up the finance post at Summit Corp Plc.
Vernalis suffered a setback last year with the surprise rejection of its headache drug Frova for the preventative treatment of menstrual migraine.
(Reporting by Ben Deighton; Editing by Simon Jessop and Andrew Macdonald) ((ben.deighton@reuters.com; +44 207 542 7009; ben.deighton.reuters.com@reuters.net).
($1=.6753 Pound)
Keywords: VERNALIS/
COPYRIGHT Copyright Thomson Reuters 2008. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.