Vicore rockets on news of planned acquisition deal

Vicore Pharma (VICO: STO) saw its shares rocket 29.57% to 14.90 Swedish kronor, after it announced an agreement to acquire INIM Pharma, a fellow Sweden-based biopharmaceutical company developing a new local treatment for severe rare lung diseases such as idiopathic pulmonary fibrosis (IPF).

Payment for the acquisition will be effected through an issue in kind, corresponding to a dilution of 35.8%. Venture capital firm HealthCap VII currently owns 85% of INIM and will hold approximately 30.4% of the shares in Vicore following the transaction.

The Vicore board of directors has decided to propose a rights issue of around 80 million kronor ($8.9 million), in relation to which HealthCap has undertaken to subscribe its pro rata share. In total, around 56.5% of the rights issue is covered through subscription intentions and undertakings.