University commercialisation company Fusion IP (AIM: FIP) said one of its portfolio companies, Morvus Technology Ltd, raised £2.15 million. The oncology focused pharmaceutical company intends to use the proceeds to progress its main drug development programs. In a separate agreement Morvus agreed a deal with Edinburgh-based NuCana BioMed Ltd, which will fund the clinical and commercial development of its ProTide technology.
"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 fundraising” commented David Baynes, CEO of Fusion IP. "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.”
Fusion IP was established to commercialise university-generated intellectual property. It has exclusive agreements with two of the UK's research intensive universities, the University of Sheffield and Cardiff University. Fusion IP currently has a portfolio of 20 active investments; it is expecting to spin out up to three new businesses in the period to July 2010 with further spin outs expected in 2011 and 2012.
Morvus says the ProTide technology enhances known cancer agents, improving their efficacy and reducing toxicity. Adding the ProTide functional molecule 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 in the body.
Fusion IP’s shareholding will represent 9.7% of Morvus Technology’s privately owned share capital, following the fundraising. The IP financier expects a £450k uplift in book-value of its portfolio from the fundraising.