NOMURA, the Japanese investment bank, is poised to buy Code Securities, the biotechnology and pharmaceutical boutique broking firm, for about £30 million.

The deal, which could be announced early next week, comes after the defection of ten of Nomura’s biotechnology specialists to Piper Jaffray, the American investment bank, this year.

The buyout of Code would see 24 biotech and life sciences specialists move over to the Japanese bank. It would help Nomura to re-establish its position as one of the leading advisers in the biotechnology sector.

A spokeswoman at Nomura confirmed that the bank was trying to rebuild its position in the biotechnology sector. Code Securities could not immediately be reached for comment.

Code has been involved in more than 100 life sciences transactions, including 26 initial public offerings. The firm was the most active adviser on biotech and medical technology financings in 2004, and in the first six months of this year raised €280 million (£190 million) on behalf of quoted corporate clients.

The defections from Nomura to Piper Jaffray have prompted several clients to review their relationships with the Japanese bank. It is understood that rivals were seeking meetings with senior executives at Vectura, Ark Therapeutics and Biocompatibles to poach them from Nomura. The bank advised all three companies on their initial public offerings.

The team from Nomura included Jonathan Gosling, head of small cap sales, and four corporate financiers. Two senior analysts also moved to Piper.

Poaching raids have become an increasingly prominent feature of the City. Earlier this year, Citigroup, America’s biggest bank, launched a raid on the rival ABN Amro Hoare Govett in a move to expand its corporate broking division. Citigroup contacted staff over a weekend with promises of large pay rises and enticed seven top bankers away.

Departures included Nigel Mills, Hoare Govett’s chief executive, and four of his team — Andrew Chapman, Tom Reid, Andrew Thompson and Chris Zeal. Charles Lytle and Alex Carter left days later to become Citigroup directors.

Morgan Stanley, the American investment bank, was also subjected to poaching attacks as uncertainty surrounded the future of Philip Purcell, the firm’s chief executive. An estimated 30 staff had left before the appointment of his successor, John Mack.

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