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Clinigen Group PLC (LON:CLIN) has confirmed it is in talks with fellow AIM-listed speciality pharma Quantum Pharma PLC (LON:QP.) regarding a potential takeover offer. Quantum announced yesterday that it had received an indicative proposal – not a firm intention – from Clinigen about a potential cash-and-shares offer. READ: Quantum leaps higher as Clinigen mulls possible offer Like Quantum, Clinigen told investors that the proposal is non-binding and is subject to “material preconditions” including customary due diligence. “As a result, it is emphasised that there can be no certainty that an offer will be made for Quantum Pharma, nor as to the terms on which any offer may be made.” Under City takeover rules, Clinigen has until 5pm on 13 September to firm up its offer for Quantum or withdraw its interest entirely. Any deal, should Clinigen follow through with its ‘indicative proposal’, would make sense, given both firms’ focus on developing niche medicines. It also wouldn’t break the bank for Clinigen, which has a market cap in excess of £1bn and reported “significantly stronger” cash flow performance at its year end update last month. Clinigen investors seem to be broadly in favour of the deal, with shares opening 1.1% higher at £10.38.
Original Article: Clinigen confirms it is in talks to take over Quantum PharmaNEXT ARTICLE