Norwood Immunology set for May IPO in London

Australian biotech company Norwood Immunology plans to list its shares in London in late May, which should value the company at about £115 million (AUD$283 million).

Norwood Immunology specialises in drugs to boost the human immune system and aims to develop treatments for illnesses such as cancer, HIV/Aids and multiple sclerosis which reduce the body's ability to fight infection.

The company intends to raise 15 million pounds through the initial public offering on London's junior AIM market.

Australian parent company Norwood Abbey currently holds about 92 per cent of Norwood Immunology shares and said it will retain at least a 75 per cent stake after flotation.

The company works with a class of drugs called GnRH analogues, which can stimulate the thymus gland, located just behind the sternum, to produce new white blood cells -- a key part of the body's immune system.

Advisers KBC Peel Hunt said in a research note the company benefited from Australia's low research costs, and shorter drug development times because GnRH analogues were already in wide clinical use.