Arakis, the venture capital-backed biotech company which yesterday sealed a global licensing deal for one of its drugs, has hired Dresdner Kleinwort Wasserstein to prepare for a flotation.

Novartis, the Swiss pharmaceuticals group, has agreed to pay up to $375m (€292m) plus royalties to two UK biotech firms, Arakis and AIM-listed Vectura, for an exclusive license to develop and market a respiratory drug, AD 237, which is about to begin its final clinical trials.