Molecular Partners Rises in Trading Debut on Allergan Support

Nov. 5 (Bloomberg) — Molecular Partners AG shares rose on the Swiss company’s trading debut, the second-biggest biotechnology offering in Europe since 2007, as Allergan Inc. supported the sale.

Molecular Partners put its listing on hold two weeks ago, citing a volatile stock market, and resumed book-building for the offer two days ago. Allergan, the Irvine, California-based drugmaker that funds development of Molecular Partners’ most advanced eye medicine, supported the IPO with an investment, according to the Swiss company.

“U.S. investors are increasingly recognizing the attractiveness of European biotech,” said Samir Devani, a health-care analyst at Rx Securities.

The stock rose 4 percent from the 22.40-franc offer price as of 4:20 p.m. in Zurich, after surging as much as 12 percent. Molecular Partners sold almost 23 percent of its shares, raising about 100 million Swiss francs ($104 million), not counting an over-allotment option, according to data compiled by Bloomberg.

“Investors filter for quality, so maybe the quantity of IPOs is to decline, but the window for companies with proximity to revenues is not closed yet,” Navid Malik, a London-based analyst at Cenkos Securities Plc, said by phone.

Christian Zahn, Molecular Partner’s chief executive officer, declined to disclose Allergan’s stake in an interview two days ago and said the company is “not seeking a takeover.”

Another possible Swiss IPO candidate may be biotechnology company NovImmune SA, newspaper Finanz und Wirtschaft reported. The company hired Andrew Oakley, former chief financial officer of Actelion Ltd., in March as its CFO.

To contact the reporter on this story: Jan-Henrik Förster in Zurich at [e-mail] To contact the editors responsible for this story: Mariajose Vera at [e-mail] David Risser, Kim McLaughlin