Pharma success: Stockopedia speaks to Ronald Openshaw, CFO of Plethora Solutions plc

When Ronald Openshaw was drafted in as interim finance director of pharmaceuticals group Plethora Solutions Hldgs (LON:PLE) in February 2009, the company was closing in on a global licensing deal for its flagship product, PSD 502. In the months that followed, Plethora not only secured that deal but also began working on a similar agreement for the next product in its portfolio, PSD 503. It also set up a new distribution arm called The Urology Company to begin driving a range of other treatments out into the market. While frustrated that the market has never given the company proper credit for the deals it has done, Openshaw is confident that last year’s successes have left it poised to make even more of an impact this year

Plethora is behind the development and distribution of treatments focused on urology and sexual medicine, together with men’s health and women’s health conditions. When it came to AIM in March 2005, it raised £10m at 135p per share and was mid-way through the clinical trials process for PSD 502 - a topical treatment for premature ejaculation, PSD 503 - a topical treatment for stress incontinence and PSD 506 - novel agent for the treatment of overactive bladder. In May 2007, it signed a licensing deal with Sciele Pharma for the US rights to PSD 502 but over the course of the next two years Sciele was acquired by Japanese pharma giant Shionogi (TYO: 4507), which transformed that initial licensing deal and had a big influence on a major strategy re-think at Plethora.

Ronald Openshaw spoke to Stockopedia about the challenges of developing a small-cap pharmaceuticals group, the growing importance of private investors and the company’s plans for the rest of 2010.

Ronald, you joined Plethora in early 2009 to work with the company’s CEO, Steven Powerll. What is your background?

I spent six years at KPMG and then spent ten years at Panmure Gordon. I then spent four years at what was Pharmagene, which is now Asterand (LON:ATD), as its M&A Director, CFO, then CEO. I put that through significant change and went back to join the security of a large American investment banking firm, Jefferies International (NYSE:JEF), just before the credit crunch. In August 2008 I set up my own boutique M&A advisory house, called Lucia Capital and I spend about half my time on Plethora business.  

The CEO, Steven Powell, is a long term client come friend of mine and he was a client of mine when he was CEO of KS Biomedix when I was at Panmures. He and I had been doing work together on Plethora’s accounts whilst I was at Jefferies and then Lucia and then in February of last year he had cause to need another finance director quite quickly. He asked whether I could come and sit in as an interim. So I spend about half my time on Plethora business but what Steven, therefore, gets is access to a CFO that he might otherwise not have on Plethora’s ticket. So I can spend half my time being properly effective and it’s worked out very well so far.