Amphion Innovations' part-owned partner lines up AIM flotation

Amphion Innovations, a developer of medical and technology businesses, announced its part-owned US partner Motif BioSciences will merge with a private company.

The private company holds the intellectual property and rights to a clinical stage antibiotic against MRSA and multi-drug resistant bacteria.

The group added that the acquisition is conditional upon the completion of its initial public offering (IPO) on AIM in March.

Amphion, which holds 32% of Motif, said the US-based drug discovery company recently completed a pre-IPO AIM financing of £470,000.

Chief executive Richard Morgan said: "The acquisition of this clinical stage antibiotic is a game changer for Motif. As a result of change in the regulatory environment geared to encourage new antibiotics, we believe we have identified the right course for regulatory approval.

"Motif's upcoming IPO will fund this exciting plan and we believe will generate and return value to both Motif and Amphion shareholders alike."

Shares in Amphion Innovations were up 14.29% to 3p on Monday at 15:04.