Administrators for biotechnology firm 4D Pharma have confirmed they are seeking a buyer for the business, while currently trying to “stabilise” it.
The London-listed company entered administration on Friday after its lender, Oxford Finance, demanded immediate repayment of outstanding loans which stand at about US$13.86m (£11.3m).
With 4d Pharma unable to pay from its cash resources, James Clark and David Pike of Interpath Advisory were appointed as joint administrators.
Aberdeen-based subsidiary not affected
Four wholly-owned subsidiaries – Aberdeen-based 4D Pharma Research, 4D Pharma Cork, 4D Pharma Leon SLU and 4D Pharma Delaware Incorporated – are not in administration, with Interpath confirming these continue to trade as normal.
Interpath managing director and joint administrator James Clark, said: “Since its inception, 4D Pharma has been at the forefront of innovation around the development and use of live biotherapeutic products but, unfortunately, has been impacted by the growing uncertainty gripping the capital markets.
“Our intention is to try to stabilise the company in the immediate term, whilst we assess options for the business.
“We would encourage any parties interested in acquiring the business to contact us at the earliest opportunity.
“At this stage, 4D Pharma plc’s subsidiaries remain outside of an insolvency process and continue to trade.”
It was in July last year that 4D Pharma managed to secure a line of credit worth up to $30m – about £24.4m at today’s exchange rate – from Oxford Finance, which provides capital for healthcare and life sciences companies globally.
4D Pharma immediately drew down £10.2m of this to support drug research and development.
Aberdeen presence
More than 30 researchers are involved in the discovery and pre-clinical testing of drugs in 4D Pharma’s Aberdeen operation, at Foresterhill, although the group’s head office is in Leeds.
The company is focused on live biotherapeutics, a relatively new group of medicines that use bacteria in the human body – the microbiome – to tackle disease.
4D Pharma initially grew out of GT Biologics, a spinout of Aberdeen University’s Rowett Institute of Nutrition and Health.
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