Oxford Molecular Group Plc, throwing itself full pelt at its goal of becoming the best drug discovery services company (CI No 2,974) has launched a rights issue for 30.4m pounds to fund two further US acquisitions, Genetics Computer Group Inc, Wisconsin, and MLR Automation Inc of San Francisco. Oxford Molecular has made 5 acquisitions since it went public 3 years ago, and has since failed to make a profit or pay a dividend. Genetics Computer, which develops the Wisconsin Package DNA analysis software, has an estimated 30,000 users. Last year it made $132,000 of pre-tax profit on $3.1m worth of revenue and is being bought for $20m in cash. Three year old MLR Automation brings its CSAP software package to the piece. CSAP deciphers the results of high throughput drug trials, a technique for designing multiple variant drugs that is the equivalent of a blanket bombing approach to drug design, but as a technique it has the advantage of being easy to automate. Oxford is paying $4m for the company, which had sales of $316,000 with pre-tax profits of $77,000. The 1 for 7 rights issue is being offered at 360p per share, representing a discount of 42.5 pence at current prices. Oxford Molecular raised 16m pounds in January 1996 with a similar deal in order to buy PSI International Inc’s chemical informatics division, Health Designs Inc, and the MacVector business of Eastman Kodak Co.
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