Vectura spin-out PharmaKodex Ltd raises £7.1m
16 Nov 2006
PharmaKodex raises £7.1 million ($13.5 million) in series a financing led by Apposite and SR One
Chippenham, UK – 16 November 2006:PharmaKodex Ltd, a specialty pharmaceuticals company developing improved proprietary formulations of established therapeutics, announced today the completion of a Series A equity financing, raising £7.1 million ($13.5 million).
The deal was co-led by London-based Apposite Capital and SR One (USA and UK), the venture capital arm of GSK, one of the world's leading research-based pharmaceutical and healthcare companies. Existing investors Unilever Ventures and Vectura Group plc also participated in the financing. PharmaKodex will use the funds to further accelerate development of its pipeline of oral and transdermal pharmaceutical products through clinical studies to achieve clear patient benefits.
PharmaKodex was spun out from Vectura Group plc and Unilever Ventures Ltd in May 2006 to exploit proprietary formulation and delivery product assets from both parents. The Company's product portfolio focuses on improving existing drugs to provide faster acting, more convenient or more effective products as well as synergistic combinations, protected by strong intellectual property. The current development pipeline includes seven prescription therapies in addition to selected consumer healthcare products. The products address pain and neurological conditions, both markets with large and unmet need.
Rod Richards, Chief Executive Officer of PharmaKodex, commented:
"We are delighted to have completed this financing round with leading, experienced international healthcare investors. Since the spin out of PharmaKodex in May this year we have made rapid progress in establishing and advancing our pipeline in our aim to provide improved patient benefits in areas of significant unmet medical need. We believe our model of pursuing a targeted portfolio of prescription products allied to a small number of complementary OTC programmes offers a lower-risk yet attractive return for investors."
Dr Allan Marchington, General Partner at Apposite Capital, said:
"We are excited to be making this investment in PharmaKodex. Linked to its product portfolio the Company has a strong platform technology base which has been developed by our partners, Unilever and Vectura, over several years. In addition, the Company has a high quality, experienced management team which during the short time since the company's formation has made excellent technical and commercial progress. We are pleased that the company now has the financial resources to build on this success."
Dr Deborah Harland, Principal at SR One, added:
"PharmaKodex represents a high quality investment opportunity backed by experienced, focused management with a track record of technology innovation in formulation and drug delivery creating marketed products. We look forward to working with the team to build PharmaKodex into a business of significant value."
Following the closing of the Series A financing, Dr Allan Marchington and Dr Deborah Harland have joined the Board of PharmaKodex as representatives for Apposite Capital and SR One respectively.
Contacts:
PharmaKodex
Rod Richards, Chief Executive Officer Tel: +44 (0) 1249 667 667
Apposite Dr Allan Marchington Tel. +44 (0) 207 090 6869
SR One Dr Deborah Harland Tel +44 (0) 1279 644123
Hogarth Partnership Sarah MacLeod Tel: +44 (0) 7357 9477
Notes for Editors
About PharmaKodex
PharmaKodex Ltd is a specialty pharmaceuticals company exploiting proprietary drug delivery technologies to develop improved medicinal products. These improved medicinal products provide a well accepted reduced risk business model from which PharmaKodex will create value in both the Pharmaceutical and Consumer Healthcare/OTC sectors.
PharmaKodex will commercialise its products and technologies focussing on the accelerated development of its Rx pipeline to patient benefit targeted Phase II studies before partnering. The company will also bring forward a small number of proprietary OTC products aiming to develop these for rapid product introductions as extensions to branded franchises, in collaboration with global partners.
PharmaKodex is based in Chippenham and Cambridge, for further information, please visit www.pharmakodex.com
About Apposite
Apposite is a single sector fund investing in both life sciences and healthcare services on an international basis. Based in London, Apposite was established by the Mizuho Financial Group, one of Japan's largest financial services companies. The members of the Apposite team have a highly synergistic mix of healthcare venture/private equity, entrepreneurship, management and investment banking experience spanning many decades. Apposite also benefits from an established global network of leading advisors covering all aspects of the global healthcare market. The fund's strategy is to leverage the capabilities of the team and its advisors, combined with the fund's extensive range of contacts in Japan, Europe and the U.S., to continuously add value to its portfolio companies. For more information about Apposite please visit our website www.apposite-capital.com.
About SR One
SR One is GlaxoSmithKline's independent corporate healthcare venture capital fund. Based in West Conshohocken, PA, and London, U.K., SR One invests globally in emerging biotechnology companies that are engaged in drug discovery, development and delivery with the potential to yield dramatic patient benefits. Since its founding in 1985, SR One has invested over $475 million in the biotechnology space. For more information on SR One, its staff and portfolio companies, please visit: www.srone.com.
About Unilever Ventures
Unilever Ventures is the London-based venture capital arm of the Unilever Group. It provides venture capital funding and management skills to start-up and early stage companies. The company is 5 years into investing its first fund of €66m and has 14 investee companies. Technology spin-outs from the Unilever Group comprise a significant part of its portfolio, leveraging Unilever's scientific expertise into different industries. Unilever Ventures also focuses on consumer-facing businesses in Europe where it can draw upon the Unilever Group's expertise in Food and Home & Personal Care products and services.
For further information, please visit www.unileverventures.com.
About Vectura
Vectura's principal focus is the development of a range of inhaled drugs for the treatment both of lung diseases and other conditions where optimised delivery via the lungs can provide significant benefits, such as a rapid onset of action, improved efficacy and improved tolerability compared with current therapies.
Vectura's products combine its proprietary, innovative, pulmonary formulation and device technologies (Aspirair®, GyroHaler® and PowderHale®) with existing, off-patent drugs either for use in new indications or to provide inhalation as an improved route of administration. Using drugs that have already been approved in some form in at least one major pharmaceutical market lowers the risk of product development failure compared to new chemical entities. Vectura is able to secure patent protection for its portfolio by identifying new indications for off-patent compounds and applying the Company's proprietary delivery technologies to create new methods of administration. The Company has development collaborations with a number of companies, including Boehringer Ingelheim, Novartis, GSK and Chiesi and an un-named leading international pharmaceutical company.
For further information, please visit Vectura's website at www.vectura.com.
This press release contains "forward-looking statements," including statements about the discovery, development and commercialisation of products. Various risks may cause Vectura's actual results to differ materially from those expressed or implied by the forward-looking statements, including adverse results in clinical development programs; failure to obtain patent protection for discoveries; commercial limitations imposed by patents owned or controlled by third parties; dependence upon strategic alliance partners to develop and commercialise products and services; difficulties or delays in obtaining regulatory approvals to market products and services resulting from development efforts; the requirement for substantial funding to conduct research and development and to expand commercialisation activities; and product initiatives by competitors. As a result of these factors, prospective investors are cautioned not to rely on any forward-looking statement. We disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
