Pharmaceutical company gears up for 2007 float

Palmerston North-based New Zealand Pharmaceuticals is planning to list on the sharemarket this time next year, depending on its financial performance between now and then.

A company source said a float next year was on the cards if NZP met performance targets but, should it fall short of those, listing plans would be deferred for another 12 months.

The company was worth about $100 million when private equity firm Direct Capital took a 51 per cent stake last November.

"Our expectation will be that by the time it enters the public market the value is headed well north of that," said Direct Capital investment director Tony Batterton.

"Certainly we're very pleased with how the business is going and we think a listing is very achievable within the next 12 to 24 months."

Batterton said it was too early to say what proportion of the company would be listed.

The company, which is a finalist in New Zealand Trade and Enterprise's Export Awards, manufactures biochemicals for leading pharmaceutical and biotechnology companies.

It exports over 99 per cent of its products to Japan, North America and Europe.

Its core operations consist of processing animal and plant products but it is also developing synthetic products in conjunction with Industrial Research.

Batterton said NZP was on a relatively fast track to the market because it was a substantial company which already met most of the requirements for listing including a suitable governance structure and financial systems.