One of Wales’ leading life sciences firms, Diurnal, is set to be acquired by a US firm in a £48.3m cash deal.
Subject to shareholder approval the Cardiff-based Alternative Investment Market-listed firm will be acquired by Neurocrine, a neuroscience-focused biopharmaceutical company, with sales of $1bn.
Diurnal, which is headquartered in Cardiff and employs 33, is a pharmaceutical group targeting patient needs in chronic endocrine (hormonal) diseases.
Shareholder approval for the acquisition is expected to be confirmed next month. The acquisition is being recommended by Diurnal’s board. For the six months ended December 31, 2021, Diurnal reported unaudited net product sales (including royalties) of £2.13m and a net loss of £7.95m.
The Development Bank of Wales is a minority shareholder in the business, having invested prior to its flotation. The bank, which is wholly owned by the Welsh Government, will not make a positive return on its investment.
Anders Härfstrand, non-executive chairman of Diurnal, said: “The board of Diurnal is delighted to announce this recommended offer. Diurnal and Neurocrine are highly complementary businesses, and we believe that Neurocrine’s financial and operational resources will substantially accelerate the development of a leading franchise in diseases of cortisol deficiency, benefiting physicians and patients globally.
“We believe that the acquisition is compelling for Diurnal’s shareholders, given the risks associated with achieving Diurnal’s vision of creating a profitable business, in particular the ongoing commercial rollout of products in Europe and the execution of key clinical studies, in addition to the substantial shareholder dilution that is likely to result from accessing the capital required to deliver this vision.”
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