A Tyneside pharmaceutical company has begun trading on an American stock market as it gears up for a major product launch in the US.
Shield Therapeutics, which is listed on the AIM market in the UK, has said American investors will be able to buy stock in the company on the OTCQX Best Market.
The listing comes as Gateshead-based Shield is preparing to launch its iron deficiency drug Accrufer for sale in America.
It said the move would help attract American investors by making shares available during American working hours and priced in US dollars. It also has the potential to increase liquidity in Shield’s shares on AIM, it said.
Overseas companies that trade on the OTCQX are exempt from SEC reporting in the US if they make whatever information is required by their home market regulator publicly available to US investors. As a result, Shield will face no extra reporting obligations and will incur minimal costs from the listing.
Shield CEO Tim Watts said: “With the upcoming launch of Accrufer in the US I believe that Shield will be of increasing relevance to US based investors.
“By making our shares available on the OTCQX Best Market many US investors should find it easier to buy and sell Shield shares than they would through AIM. Shield’s existing shareholders should benefit from this as liquidity increases.”
Shield announced earlier this plans to launch its iron deficiency treatment Accrufer through its own team, having scrapped plans to team up with a commercial partner.
In April, Shield announced that a deal to sell the drug in Asia had helped the company boost sales to £10m last year.
Jason Paltrowitz, executive vice president of corporate services at OTC Markets Group, said: “We look forward to providing the company and its investors with a transparent and efficient trading experience and all the benefits of our premium public market.”
