Markets slip on Fed nerves; Collagen deal
The Federal Open Market Committee on Thursday announces whether it will raise rates for the first time in almost a decade following a two-day policy meeting.
The FTSE 100 closed 0.5% lower at 6,084.59 points
In corporate news retailers including Morrison Supermarkets (-4% at 158.3p), Marks & Spencer (-2.28% at 493.5p) and J Sainsbury (-1.54% at 229.8p) were among the top fallers after the British Retail Consortium reported declines in August sales at high street and shopping centres.
The Royal Bank of Scotland reversed an earlier rise (-1% at 325.4p) following reports the lender hired Bank of America Merrill Lynch to prepare a spin-off of its Williams & Glyn-branded retail branches in the second half of 2016.
Trinity Mirror jumped 5.94% to 147.25p after saying it was in talks to buy out the shares it does not already own in rival Local World Holdings.
Shares in Glasgow-based Collagen Solutions slipped 1% to 12p after the drug developer acquired a product used in the treatment of cartilage and bone damage.
The deal involves the acquisition of the assets and an exclusive worldwide licence for the associated intellectual property to ChondroMimetic from Cambridge University spin-out Orthomimetics and Cambridge Enterprise.
Chief executive Stewart White said it was an important next step for the company as it was its first acquisition of a medical device.
“ChondroMimetic is an ideal first medical device acquisition as it brings us both an established product as well as access to a portfolio of additional IP we can exploit in the future,” he said.
Analyst Mike Mitchell of house broker Panmure Gordon regarded the acquisition as “a bargain”. Collagen is aiming to become a £100 million business.