Fusion IP (AIM: FIP), the university commercialisation company which turns university research into business, is pleased to announce that one of its portfolio companies, Morvus Technology Ltd (“Morvus”), a pharmaceutical company that specialises in the discovery and commercialisation of novel drugs for the oncology market, has completed a £2.15 million fund raising and this should result in an uplift in value in the books of Fusion of approximately £450k.
The funds will be utilised by Morvus to progress its main drug development programs.
Fusion’s holding in Morvus results from Fusion’s sale of its specialist oncology portfolio companies, Cardiff Protides Limited and Cardiff Biologicals Limited, to Morvus in late 2007. Cardiff Protides Limited and Cardiff Biologicals were formed to exploit the innovative research of Professors Chris McGuigan and Wen Jiang at Cardiff University. As a result of the trade sale Fusion acquired a 20% shareholding in the enlarged Morvus group.
Following the funding round announced today, Fusion will now have a 9.7% shareholding in Morvus.
Further Fusion is also pleased to note that Morvus has signed an exclusive, world-wide, licensing agreement (the “Agreement”) with NuCana BioMed Ltd (“NuCana”) which grants NuCana the right to develop Morvus’ ProTide technology for the enhancement of nucleoside analogues (“nucleosides”). The Agreement grants Morvus certain rights and future milestone payments and royalties resulting from the commercialisation of the technology.
The Agreement follows joint development work, under an existing exclusive option arrangement, by the two companies on Morvus’ ProTide technology, which was invented at the School of Pharmacy at Cardiff University by Professor Chris McGuigan and was acquired by Morvus when it bought Cardiff Protides. Under the Agreement, the clinical and commercial development will be expanded and a portfolio of existing and new nucleosides will be synthesised and tested. The work will be funded by NuCana, which will also take responsibility for the commercial and clinical development strategy for the technology.
Nucleosides are important drugs used in the treatment of many common cancers and in 2008 the top-selling drug of this type, Gemzar® (gemcitabine: Eli Lilly) had world-wide sales of over $1.7 billion. The ProTide technology enhances known cancer agents, some of which are blockbuster medicines in the cancer market, and improves their efficacy and reduces toxicity. Adding the ProTide moiety to certain cancer drugs allows them to more effectively bypass the major blocks to their actions – which can cause drug resistance – and avoid early breakdown of the drugs in the body.
Commenting on the Fund raising and the announcement, David Baynes, Chief Executive Officer of Fusion IP, said: “These are difficult time for funding Biotech companies and credit is due to the Morvus management team for completing both the licensing deal with NuCana and the £2.15 million fund raising, which are tremendous achievements.
“Morvus’ Protide technology originated from work at the University of Cardiff and it is pleasing to have the value of the technology and its potential for cancer treatment recognised by NuCana through the licensing deal announced today. We look forward to Morvus’ having a successful future."
About Fusion IP
Fusion IP plc (Fusion) was established in 2002 to commercialise university-generated intellectual property. It has long-term exclusive agreements with two of the UK’s leading research intensive universities, the University of Sheffield and Cardiff University, giving it exclusive access to a combined R&D spend of over £185m a year.
Fusion’s first agreement was a ten-year exclusive arrangement with the University of Sheffield giving it the right to commercialise (through both the creation of spin-out companies and licensing) research, owned by the University, initially in the area of medical life sciences. This agreement was expanded in July 2008 to include all non-life science research-generated IP such as energy, engineering and electronics. Fusion has significant shareholdings in a portfolio of Sheffield University spin-out companies including Simcyp, Magnomatics, Diurnal and Phase Focus.
In January 2007, Fusion completed a ten year exclusive agreement with Cardiff University, also giving it the right to commercialise (through the creation of spin-out companies) Cardiff University's research-generated IP. Fusion has significant shareholdings in a portfolio of Cardiff University spin-out companies including Mesuro, Abcellute, Medaphor and Q-Chip.
On 2 December 2009 Fusion announced that it had raised approximately £3.2 million through a fund raising and that as a result, IP Group held approximately 19.8% of Fusion.
Fusion has also entered into a new Co-Investment Agreement with IP Group, in which IP Group has the right to acquire for cash, 20% of Fusion’s equity in any new portfolio company. As Fusion normally owns 60% of any new portfolio company at start-up, IP Group’s shareholding would normally equate to a 12% stake in the new portfolio company.
Fusion IP also has a Memorandum of Understanding with Finance Wales, the provider of commercial funding to Wales-based SMEs, which outlines a strategy of co-investment in opportunities arising from the Cardiff Agreement.
About Morvus Technology Ltd.
Morvus Technology is a privately-owned company engaged in the discovery, development and commercialisation of novel drugs for the oncology market. The Company was established in 2004 and has offices and laboratories near Llanarthe, South Wales. Morvus has a broad portfolio of technology which is focused on disease areas for which there is a clear, unmet medical need. For further information, please visit www.morvus.com.
About Nucana Biomed Ltd.
NuCana BioMed is an emerging biopharmaceutical company dedicated to the discovery, development and commercialisation of innovative, rationally designed medicines that address significant unmet medical needs. The NuCana BioMed management team has a successful track record of building virtual biopharmaceutical organisations to global integrated companies.
The funds will be utilised by Morvus to progress its main drug development programs.
Fusion’s holding in Morvus results from Fusion’s sale of its specialist oncology portfolio companies, Cardiff Protides Limited and Cardiff Biologicals Limited, to Morvus in late 2007. Cardiff Protides Limited and Cardiff Biologicals were formed to exploit the innovative research of Professors Chris McGuigan and Wen Jiang at Cardiff University. As a result of the trade sale Fusion acquired a 20% shareholding in the enlarged Morvus group.
Following the funding round announced today, Fusion will now have a 9.7% shareholding in Morvus.
Further Fusion is also pleased to note that Morvus has signed an exclusive, world-wide, licensing agreement (the “Agreement”) with NuCana BioMed Ltd (“NuCana”) which grants NuCana the right to develop Morvus’ ProTide technology for the enhancement of nucleoside analogues (“nucleosides”). The Agreement grants Morvus certain rights and future milestone payments and royalties resulting from the commercialisation of the technology.
The Agreement follows joint development work, under an existing exclusive option arrangement, by the two companies on Morvus’ ProTide technology, which was invented at the School of Pharmacy at Cardiff University by Professor Chris McGuigan and was acquired by Morvus when it bought Cardiff Protides. Under the Agreement, the clinical and commercial development will be expanded and a portfolio of existing and new nucleosides will be synthesised and tested. The work will be funded by NuCana, which will also take responsibility for the commercial and clinical development strategy for the technology.
Nucleosides are important drugs used in the treatment of many common cancers and in 2008 the top-selling drug of this type, Gemzar® (gemcitabine: Eli Lilly) had world-wide sales of over $1.7 billion. The ProTide technology enhances known cancer agents, some of which are blockbuster medicines in the cancer market, and improves their efficacy and reduces toxicity. Adding the ProTide moiety to certain cancer drugs allows them to more effectively bypass the major blocks to their actions – which can cause drug resistance – and avoid early breakdown of the drugs in the body.
Commenting on the Fund raising and the announcement, David Baynes, Chief Executive Officer of Fusion IP, said: “These are difficult time for funding Biotech companies and credit is due to the Morvus management team for completing both the licensing deal with NuCana and the £2.15 million fund raising, which are tremendous achievements.
“Morvus’ Protide technology originated from work at the University of Cardiff and it is pleasing to have the value of the technology and its potential for cancer treatment recognised by NuCana through the licensing deal announced today. We look forward to Morvus’ having a successful future."
About Fusion IP
Fusion IP plc (Fusion) was established in 2002 to commercialise university-generated intellectual property. It has long-term exclusive agreements with two of the UK’s leading research intensive universities, the University of Sheffield and Cardiff University, giving it exclusive access to a combined R&D spend of over £185m a year.
Fusion’s first agreement was a ten-year exclusive arrangement with the University of Sheffield giving it the right to commercialise (through both the creation of spin-out companies and licensing) research, owned by the University, initially in the area of medical life sciences. This agreement was expanded in July 2008 to include all non-life science research-generated IP such as energy, engineering and electronics. Fusion has significant shareholdings in a portfolio of Sheffield University spin-out companies including Simcyp, Magnomatics, Diurnal and Phase Focus.
In January 2007, Fusion completed a ten year exclusive agreement with Cardiff University, also giving it the right to commercialise (through the creation of spin-out companies) Cardiff University's research-generated IP. Fusion has significant shareholdings in a portfolio of Cardiff University spin-out companies including Mesuro, Abcellute, Medaphor and Q-Chip.
On 2 December 2009 Fusion announced that it had raised approximately £3.2 million through a fund raising and that as a result, IP Group held approximately 19.8% of Fusion.
Fusion has also entered into a new Co-Investment Agreement with IP Group, in which IP Group has the right to acquire for cash, 20% of Fusion’s equity in any new portfolio company. As Fusion normally owns 60% of any new portfolio company at start-up, IP Group’s shareholding would normally equate to a 12% stake in the new portfolio company.
Fusion IP also has a Memorandum of Understanding with Finance Wales, the provider of commercial funding to Wales-based SMEs, which outlines a strategy of co-investment in opportunities arising from the Cardiff Agreement.
About Morvus Technology Ltd.
Morvus Technology is a privately-owned company engaged in the discovery, development and commercialisation of novel drugs for the oncology market. The Company was established in 2004 and has offices and laboratories near Llanarthe, South Wales. Morvus has a broad portfolio of technology which is focused on disease areas for which there is a clear, unmet medical need. For further information, please visit www.morvus.com.
About Nucana Biomed Ltd.
NuCana BioMed is an emerging biopharmaceutical company dedicated to the discovery, development and commercialisation of innovative, rationally designed medicines that address significant unmet medical needs. The NuCana BioMed management team has a successful track record of building virtual biopharmaceutical organisations to global integrated companies.
