Shares in Bioglan Pharma staged a revival this mornning after the UK specialty drugmaker named Goldman Sachs as its new stockbroker and financial adviser.
Bioglan is in talks with a pharmaceutical group - blieved to be Bristol-Myers Squibb - to buy a range of skin products with worldwide revenues of $240m.
But ABN Amro's resignation as the company's stockbroker on Wednesday, six days after the exit of Bioglan's finance director, cast doubt on whether the negotiations would succeed.
Bioglan's mounting debts and crumbling share price - almost 50% down in a week - raised questions about how Bioglan can pay an estimated $700m for the the dermatology business. Its share price dropped by nearly 11% yesterday.
Bioglan's founder and chief executive, Terry Sadler, said that Goldman Sachs shared his company's vision in strategy.
It is understood that Lehman Brothers was Bioglan's preferred broker choice.
