Pfizer's spun-off Japan lab targets IPO by 2011

TOKYO, July 3 (Reuters) - RaQualia, a pharma venture that was recently spun off by drug maker Pfizer Inc (PFE.N), aims to go public by the first quarter of 2011, its president said on Thursday.

RaQualia Pharma Inc targets sales of 1.1 billion yen ($10.37 million) in 2009 and 4.1 billion yen in 2010 by capitalising on the intellectual property inherited from the U.S. drug giant and financial resources injected by venture capital funds as well as Pfizer.

"With the support of venture capital funds, RaQualia has raised enough funds to move towards an IPO," RaQualia president Atsushi Nagahisa told a news conference.

"If stock market conditions permit, we will aim to carry out an IPO around the end of 2010 or in the first quarter of 2011. We have an IPO-ready portfolio" of research and development programs, compounds and drugs, Nagahisa said.

The venture started business on Tuesday, taking over 70 employees and a 2.2 billion yen-worth portfolio of compounds and drugs in the pipeline from Pfizer.

The world's largest drug maker decided in January 2007 to spin off its research and development laboratory in Nagoya, central Japan, as part of the company's global restructuring program.

The reorganisation programme features plans to slash Pfizer's staff base by 10,000 worldwide and to concentrate its research and development operations in the United States and the UK. The Japan lab had about 400 employees at the time.

Japan's NIF SMBC Ventures Co is the top shareholder of RaQualia, which has capital of 10 million yen, with a 32 percent stake.

The UK's Coller Capital holds the second biggest chunk of ownership in the venture, with a 24 percent stake. Pfizer is the third-largest shareholder, holding 19 percent. Seven other firms are also investing in the firm.

RaQualia has raised total 11.1 billion yen of funds, which are needed for its research and development operations in the next three to five years, from investors, with NIF SMBC contributing 3.8 billion yen, Coller 2.9 billion yen and Pfizer 2.2 billion yen, Nagahisa said.

RaQualia will likely spend about 3.5 billion yen on development each year, he said.

Nagahisa, like others, has joined RaQualia from Pfizer's Japan unit where he was a managing director in charge of research and development.

RaQualia, which will focus on pain and gastrointestinal therapeutic areas, has inherited six drug discovery programs, six compounds and three products from Pfizer. Pfizer has a prior right to the Nav1.3 pain killer drug currently under a research program.

RaQualia aims to verify the clinical effects of two compounds each year in one of international markets, Nagahisa said.

(Reporting by Yumiko Nishitani)