Degussa setting up Zentaris IPO

The German chemicals group Degussa will start bookbuilding for the flotation of its biotechnology branch Zentaris, on June 6, reports the Financial Times. Degussa is planning to dispose of its healthcare division Asta Medica. This disposal could raise up to Euro 1bn in proceeds, and this IPO is the first step. Asta Medica has been broken into four sections: Zentaris, cancer, healthcare, and branded generics. This radical restructuring follows a failed attempt to sell Asta Medica as a whole last year, and will cut about one fifth of the jobs. Degussa​ is to float 61 per cent of Zentaris on Frankfurt's Neuer Markt in an IPO that could value it at up to Euro 290m. This unit focuses on asthma, cancer, gene therapy and hormone treatments. It also has a division developing inhalation devices. Merck and Schering, the German pharmaceuticals groups, are considered as likely buyers. The IPO is also seen as attractive to international biotechnology groups looking for sales infrastructure. Source: Financial Times​