Nycomed hopes for Daxas deal, targets IPO

LONDON (Reuters) - Nycomed hopes to pick a U.S. licensing partner for Daxas, its "smoker's lung" drug, by the end of June and ultimately aims for a stock market listing, the privately held Swiss drugmaker said on Tuesday.

Zurich-based Nycomed's focus on a licensing deal and eventual listing dampens speculation of a takeover by a larger rival. But it leaves the door open to what could be one of the sector's biggest initial public offerings (IPOs) in years.

Nycomed spokeswoman Beatrix Benz said in a statement Daxas had drawn "great interest" from parties proposing to commercialise the drug in the United States.

"Nycomed is optimistic that an agreement can be finalized in the first half of the year, as planned," she said.

"Nycomed is aiming for a stock market introduction at some stage, depending on timing and market conditions," she added. "But there is no target date set. Our immediate and primary objective remains to find a licensing partner for Daxas in the United States."

In March, the Wall Street Journal said Nycomed had hired Goldman Sachs to explore a possible sale of the company, in a deal that could be worth as much as 10 billion euros ($13 billion).

Nycomed and Goldman have declined to comment on their relations but people familiar with the situation said the bank's primary role was to find a partner for Daxas. Nycomed has said since last November that a licensing deal for the drug could be a prelude to an IPO.

And healthcare investment bankers have downplayed the idea of an outright sale, citing Nycomed's high price expectations and a limited field of suitors -- factors that led Iceland's Actavis to put its own 5 billion euro auction on hold recently.

"I don't see (Nycomed) getting a big payday through an auction," said one investment banker who declined to be named because he was not authorised to speak to the media.

"Everyone that would normally be a likely buyer is busy at the moment absorbing another deal or they've ruled out acquisitions for the moment."

Big drugmakers have engaged in a flurry of dealmaking to help stave off a wave of expiring patents and strip out costs. Some, such as Sanofi-Aventis SA, are still open to growing in faster-growing emerging markets such as Russia, where Nycomed is active.

CHRONIC DISEASE

The global IPO market has all but stalled since mid-2008, although pharmaceutical giant Bristol-Myers Squibb Co successfully span off child nutrition company Mead Johnson Nutrition Co in a $720 million deal in February.

Nycomed had earnings before interest, tax, depreciation and amortization (EBITDA) of 1.21 billion euros on revenue of 3.348 billion in 2008.

If it were to raise a billion euros or more by publicly selling a stake, that would be the biggest deal since Alcon Inc's March 2002 flotation, which raised 2.86 billion euros, according to Thomson Reuters data.

Nycomed is majority owned by four private equity firms, led by Nordic Capital with a 41 percent stake. Nordic declined to comment. The other three are Credit Suisse's DLJ Merchant Banking, Coller International Partners and Avista.

Analysts believe Daxas, which targets patients with severe chronic obstructive pulmonary disease, could become a major seller.

If approved, Nycomed's oral drug would compete with GlaxoSmithKline's Advair and Spiriva, marketed by Pfizer and Boehringer Ingelheim, although it works in a different way by targeting an enzyme called phosphodiesterase 4 involved in inflammation.

(Additional reporting by Jesssica Hall in Philadelphia; Editing by Elaine Hardcastle and Rupert Winchester)