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Life Sciences Division - 'Current Opportunities'
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Current Opportunities within the Life Sciences Division
This is the page to bookmark if you wish to stay abreast of current Life Sciences investment opportunities
at Beer & Partners. If you wish to know more about any of the businesses below, please call or email the
responsible associate listed below each entry.
These entries are based on the Beer & Partners Opportunity Search. The entries relating to Life Sciences
have been extracted for this page.
For general comments and suggestions on this page please email lifesciences@beerandpartners.com
or call Simon Heywood on 07831 655 533 or Jay Fisher on 0207 329 4884.
Cancer Diagnostic Platform Preparing to Launch into a Substantial Global Market
Stage: Early Stage
Funds Sought: £500,000
Location: North East
Reference Number: 51277
Screening and diagnostic programmes for cervical cancer involving millions of women have helped to save lives despite subjective and inaccurate methodologies. Vaccination programmes are costly, do not provide complete protection and are causing a rethink in screening approaches. Despite the current best practice, too many women undergo unnecessary and painful biopsies and excisions. Substantial budgets are committed to combating cervical cancer but the high cost and inefficient use of resources means that better technologies will be very favourably received.
The company has developed a unique diagnostic device based upon an objective physiological property - the variation in electrical impedance between healthy and diseased tissue. Patents have been awarded and others are in process. By first launch in Q4 2011, it will have been tested in 900 women in clinical trials and adoption promises less distress, considerable cost savings and better outcomes. An international panel of specialists are hoping to use the product as soon as possible. Launch will initially be into the referral market of $350m to $500m and then into the screening market of $4.5bn. With clear advantages over current technologies and serious interest from multinationals, the company believes that using a conservative multiple of 4 times sales the company will be valued at £50m in 2015.
Investment is EIS qualified. Further detailed information is available.
Contact: Bill Caldwell - 07785 222 862 - caldwell@beerandpartners.com
New Medicines from Old Drugs - Commercial Expansion of Transdermal Drug Business
Stage: Early Stage
Funds Sought: £2m
Location: Scotland
Reference Number: 51236
This business specialises in the repositioning of medicines via reformulation as “Super Generic” transdermal patch applications. Many unpleasant side-effects are avoided using this approach.
Because the drugs concerned are previously well-proven and approved, they carry low risks of technical, safety and regulatory delays. The new medicines are however protected by new patents.
Soon after it was founded the company raised over £2.5million in private equity placement and grants and has now created 2 new medicines. It has secured a license deal with one of them in the USA with expected royalties of c £25m from that territory and £154m annual revenues when expanded to targeted territories. Royalties are expected to commence during 2014.
£500k towards this round is already committed. The fresh capital will allow the business to bring forward a broader portfolio of products and a better exit valuation than natural growth will allow. The valuation is still modest.
Contact: Richard Silberbauer - 07808 144 609 - silberbauer@beerandpartners.com
&
Simon Heywood - 07831 655 533 - heywood@beerandpartners.com
Acquisition of a Going Concern in Food Testing and a New Technology to Further Boost Revenues
Stage: Early Stage
Funds Sought: £375,000
Location: Scotland
Reference Number: 51078
The company has agreed to acquire a leading distributor of food tests in the UK and Europe on close of this funding. The significant advantages of the new tests have prompted leading customers to state that they will promptly transition to the new test when it is launched in 2011, providing the company with a rapid entry into the market and a platform for growth. Projected revenues for 2014 are £31.2m
The company has developed an accurate and inexpensive test for food pathogens that is faster and offers better margins to users than current tests. Testing laboratories therefore have a business imperative to switch. Readily adaptable to the same equipment and laboratory procedures currently used by many labs, this automated test offers substantial reduction in labour, higher through-put and lower customer costs.
The company believes that compatibility and innovation will drive outstanding growth in revenues and make it an attractive acquisition target within a few years.
Forecast revenues for 2011 are £4m and profitability (post acquisition) of the combined entity is expected in 2012. Two VCs and a major laboratory multi-national have taken a serious interest in the company. A regional fund has committed a co-investment of £450,000.
£375,000 is sought of a total funding of £1.5m to be achieved through matched funding and other sources. Shares are EIS qualified.
Contact: Bill Caldwell - 07785 222 862 - caldwell@beerandpartners.com
Electronic Data Capture for Post-approval (Ph IV) Clinical Trials - catch the growth in this segment
Stage: Expansion
Funds Sought: £250,000
Location: London
Reference Number: 50935
This business has already achieved £600k year revenues from its software product for implementing electronic data capture (EDC) for the £12bn p.a. post-approval studies market. This area of medical trials is growing at 20% cagr mainly because of a tougher attitude to regulation and reimbursement for approved medical treatments around the world.
The wholly owned product was developed in close cooperation with Johnson and Johnson and has been proven and is deployed in a number of big pharma funded trials.
Worldwide annual expenditure on EDC in post-approval trials is currently estimated at just £77m However, this is expected to grow at least as fast as the overall post-approval trials market, if not faster as uptake of EDC replaces the paper-based processes still commonly used in these studies.
Informed industry insiders and our client have recognised ahead of most that existing pre-approval clinical trials software is not suitable for post-approval trials. They have an approach which both delivers business scalability without increasing technical resource and which protects their know-how from competitors. They are able to leverage highly credible reference accounts to obtain customer confidence.
Funds are required to obtain faster business development than organic growth will allow.
Contact: Simon Heywood - 07831 655 533 - heywood@beerandpartners.com
&
Richard Silberbauer - 07808 144 609 - silberbauer@beerandpartners.com
New Generation High Volume Diagnostics
Stage: Pre-IPO
Funds Sought: £500,000
Location: London
Reference Number: 51152
This high volume diagnostics technology business is now delivering revenues and supply contracts with government agencies, industry consortia and distributors.
By using two types of highly developed assay technology (advanced Lateral Flow Devices and fluoroscopy in micro-arrays), it has developed a powerful platform for delivering rapid tests both in the field and in laboratories. Commercial exploitation of the platform has begun in plants and animal diseases. Human health will follow.
The company's platform has enabled two products for cattle testing (Bovine Viral Diarrhoea) and dairy products testing (Mastitis). These are hugely significant disease areas commercially. This has drawn the attention of established big pharma animal/human vaccine makers whose own value propositions are significantly advanced by accurate and affordable diagnostics.
This client has entered an exciting commercial growth period, offering substantial potential for investors.
Contact: Simon Heywood - 07831 655 533 - heywood@beerandpartners.com
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Richard Silberbauer - 07808 144 609 - silberbauer@beerandpartners.com
Cancer Drug
Stage: Early Stage
Funds Sought: £150,000
Location: London
Reference Number: 32110
Our client is a cancer discovery company that has already raised finance through our network.
The company is closing in on its target – to demonstrate the effect of its unique molecular technology against cancer in animals. It is raising a round to close in October, to fund this step over the next 6 months, which if successful will increase the value of the company by an order of magnitude. The company's 'lead' molecules select cancer cells and destroy them, without harming normal human cells.
The longer term plan is to take drugs into human trials, financed by the round that follows and by European grants. Exits are possible within 3 years, through a number of possible routes. Angel investors are the prime source of support at this stage, though some corporate venturing and a UK bank already hold shares. Pharmaceutical companies and VCs have indicated their interest at the conclusion of the animal experiments.
Contact: Angus Milne - 020 7329 4884 - milne@beerandpartners.com
Improvement to Keyhole Surgery
Stage: Near Revenue
Funds Sought: £450,000
Location: London / West Midlands
Reference Number: 51144
OpClear is a unique solution to one of the most important problems in keyhole surgery – how to keep a laparoscope lens clear during a procedure. A disposable device, the OpClear already has significant support from leading laparoscopists and hospital management because it is easy to use and effective. A prototype device has been tested very successfully in veterinary use and patents are being rapidly processed in UK, Europe and US. It will be launched in 2012 into a global market of over 11m procedures (£900m addressable market) by a highly experienced management team.
Over £950,000 was raised in H2 2010 under EIS at £2.2m valuation before patent process and at a very early stage of development. Up to £450,000 is now being offered at the same price to enable the company to get to breakeven (£300,000 of this is already raised, enough to launch OpClear). An exit at over £40m is targeted from 2014.
Contact: Simon Heywood - 07831 655 533 - heywood@beerandpartners.com
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Richard Silberbauer - 07808 144 609 - silberbauer@beerandpartners.com
Transforming Clinical Trials, Diagnostics and Treatment Regimes
Stage: Expansion
Funds Sought: £2m
Location: East Anglia
Reference Number: 50737
Based on research conducted by Nobel prize-winner Cesar Milstein, our clients have developed a unique method for Pharma companies to lower the cost of running clinical trials for their new drugs which can typically run into tens of millions and more. There is a growing demand for diagnostic tools – biomarkers - to speed up the process and provide early intelligence on whether or not a drug is working. Our client has demonstrated that its platform biomarker technology is applicable to a wide range of different diseases. From the Pharma perspective it can show:
- It has discovered a cost effective way of developing specific biomarkers for use in a clinical trial of a new drug
- Rather than waiting for the patient to get better (weeks, months or years), the biomarkers can measure a patient’s response to a drug much earlier. This allows much earlier and more effective decision making, a shorter clinical trial process and very significant cost savings
- In the longer term, and post clinical trials, the biomarker can then be used as a companion diagnostic to work alongside the drug
The company has already secured agreement from multinational Pharma companies to develop biomarkers for clinical trials to test new drugs to treat life threatening diseases.
The company is now raising up to £2m to provide the working capital to fund the early commercial developments and to achieve major value-adding milestones.
Contact: Richard Silberbauer - 07808 144 609, Email: silberbauer@beerandpartners.com
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Patrick Angier - 07780 971 025, Email: angier@beerandpartners.com
Novel Cancer Diagnostic With Wide Application
Stage: Pre-revenue
Funds Sought: £250,000
Location: Yorkshire / London
Reference Number: 51356
Researchers at the University of Bradford have developed a novel technology that provides a diagnostic assessment of a person’s cancer status. The test, carried out on a blood sample, is able to categorise individuals into those who have cancer, those with a precancerous condition and those who do not have the disease. Proof of concept has been established and our client has been formed to develop a diagnostic instrument that will enable cancer screening programmes around the world to improve performance at a lower cost and with significantly less inconvenience to many patients. Intended exit is by trade sale.
This company is offering 6,250 new ordinary shares at £40 per share (raising £250,000) to finance stage one product development. On completion these new shares will represent just over 38% of the enlarged capital. We would particularly welcome any investor with relevant medical or diagnostic industry experience.
Contact: Simon Heywood - 07831 655 533 - heywood@beerandpartners.com
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Richard Silberbauer - 07808 144 609 - silberbauer@beerandpartners.com
Disruptive Diagnostic Technology Revolutionising Critical Care in Hospitals
Stage: Pre-IPO
Funds Sought: £500,000 (in total £4m Pre-IPO Round)
Location: East Anglia
Reference Number: 51282
Our client's highly innovative products provide a revolutionary improvement for critically ill patients through accurate, real-time monitoring. Their proven, patented microchip technology, initially developed by Siemens, who are a shareholder, can be used for:
- Critically ill patients in intensive care (market 12m patients p.a. worldwide).
- Heart/lung bypass surgery (1m patients p.a.).
- Monitoring anaesthetics (13m patients p.a.).
Regulatory approval for initial products has either been obtained or is expected by year end. This business has a full commercialisation deal with Sorin, the world's largest supplier of heart/lung bypass equipment, which should lead to rapid sales. Discussions are under way with the world leader in intensive care equipment about incorporating this company's product into their range. Both have already made equity investments into this business. Forecast sales are £0.5m for 2011 rising to £65m (with PBT £23m) in 2015. Our client is on track for IPO on AIM before the end of 2011.
A £4m pre-IPO funding round is well under way to allow this company to reach several value enhancing milestones before IPO later in 2011. The round is corner-stoned by existing institutional investors. New investment can be either as a loan convertible into shares at a 30% discount to the IPO price, or as ordinary shares eligible for EIS at a substantial discount to the planned IPO issue price.
Contact: Lawrence Fenelon - 07789 204 825 - fenelon@beerandpartners.com
Very Advanced Portfolio of Plant Derived Products
Stage: In Revenue
Funds Sought: £2m
Location: Thames Valley
Reference Number: 51357
This business has built, advanced and maintains a considerable portfolio of plant derived drugs for use in hospitals and clinics, medicines for sale over the counter and functional ingredients for foods and cosmetics at all stages of clinical proof. The company was previously listed on AIM and taken private in 2009 by the management at the request of shareholders. The management has been augmented and the strategy revised so as to include the generation of more near-term revenues. In June 2011 the business won a purchase order for its clinically proven and fully protected energy boost product.. This is but one of a series of commercial break-through announcements it expects to make over the coming months. It has formed partnerships with a number of industry giants who are actively collaborating on commercial opportunities accross all three sectors of the business.
The £2m will allow development of Y1 revenues to £1m, allow the company to obtain controlling interest in its Chinese partner company and create a bridge to a £10m-£15m funding round within 18 months. When the company is profitable it will likely re-list. Investors today have the opportunity to invest privately in a pharmaceutical company with realistic prospects of delivering a simple exit through publicly listed shares at a multiple return on investment.
Contact: Simon Heywood - 07831 655 533 - heywood@beerandpartners.com
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Richard Silberbauer - 07808 144 609 - silberbauer@beerandpartners.com
Inhaled Medicine To Treat Cystic Fibrosis
Stage: Near Revenue
Funds Sought: £700,000
Location: Scotland
Reference Number: 50235
Our client is a pre-clinical biopharmaceutical company developing a new class of inhaled medicines which could fundamentally change the way we treat, prevent and control serious respiratory disease. By mimicking nature to disrupt mucus, fight infection, and make breathing easier, the company has successfully developed a synthetic “biomimic” of the missing body responsible for normal lung function. They are currently progressing a novel therapeutic medicine for the treatment of the life-threatening disease cystic fibrosis, and expect to be in clinical trials within 6-months. With strong market demand for novel respiratory medicines, in particular those therapies attracting “orphan drug” status, this company is positioning itself to secure revenue-earning licensing agreements with a major pharmaceutical or biotechnology company by 2014 on completion of clinical proof-of-concept trials. The company believes that if these trials are successful, it has a high likelihood of achieving a 20x return to current round investors by means of an out-licensing transaction to the value of £200million.
The board wish complete pre-clinical product safety testing as the final step before entering early patient trials, so have elected to raise a further £1,000,000 of equity at the same valuation as the last round (£60.00 per share, 40,800 shares is issue) to expedite a quick fundraising. Existing shareholders are currently buying shares, and have already subscribed for £300,000. This round is now open to new investors for the remaining £700,000. An investor with drug development, medical device or complementary management skills would be welcomed.
Contact: Richard Silberbauer - 07808 144 609, Email: silberbauer@beerandpartners.com
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Patrick Angier - 07780 971 025, Email: angier@beerandpartners.com
Living Bandage for Knee Injuries
Stage: Pre-revenue
Funds Sought: £500,000 with approximately 30% already committed
Location: Across UK
Reference Number: 51361
Our client is developing a cell bandage (a medical device) for the repair of meniscal tears in the knee. Currently, most tears (>1,800,000 in EU and US) are treated by surgical removal of the tissue; however this often results in an expensive knee replacement 5-8 years later. This company's cell bandage is the only first-line treatment for meniscal repair and uses your cells to repair the tear and the approach is endorsed by a number of leading orthopeadic surgeons. Cell bandage has recently been approved to be evaluated in Man by the UK regulators (MRHA) and the company is seeking funds to complete the clinical trial this year in Bristol.
Investors would gain a ~25% stake in a high profile pioneering company developing a game changing product. Investment funds are earmarked for clinical evaluation (12-24 months) of cell bandage. Clinical efficacy would result in significant value uplift. The company expects that once clinical efficacy has been demonstrated that it will become an attractive target for acquisition.
Contact: Simon Heywood - 07831 655 533 - heywood@beerandpartners.com
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Richard Silberbauer - 07808 144 609 - silberbauer@beerandpartners.com
Residential Courses to Help Victims of Accidents Return to an Active Working Life
Stage: Pre-revenue
Funds Sought: £500,000 with approximately 30% already committed
Location: Across UK
Reference Number: (Fair Client Only)
Our client has recently run its first residential course for 4 clients. Of these four, three showed remarkable results and one, although less spectacular, enabled the insurance company to close the case file. Typically the service is paid for by the insurance company, to ensure that potential claims can be limited by improvement in the patient with a view to returning to work/active life. The consultant-led course is based on an active rehabilitation programme of the sort now widely known about and operated at Headley Court for injured servicemen; it is recommended by NICE and the HSE. The second course is being filled now. With a pipeline of 24 clients being assessed, the company breaks even with 5 clients per course, and can accommodate a maximum of 10 on each course.
With sound and industry-experienced management, our client expects to be in profit during the first quarter of the second year. The company is offering 20% of the equity for £200,000. EIS has been approved. This company becomes very profitable as the number of courses rises. It is expected that there will be a trade sale in five years time.
Contact: Dwight Makins - 0207 329 4884 - makins@beerandpartners.com
Medical Device to Aid Breast Cancer Surgery and Other Procedures
Stage: Early Stage
Funds Sought: £150,000
Location: East Midlands
Reference Number: 50474
Surgeons treating patients with cancer need to find out how far the disease has spread before deciding on appropriate treatment. In breast cancer this is usually done by surgical examination of lymph nodes nearest to the tumour. The lymph node is located by injecting a short-lived radioisotope tracer around the tumour and measuring where the tracer goes. The existing scanners for imaging the uptake are room-sized, costing around £250,000 and can not be used in operating theatres.
This company has been set up to exploit patented, world-leading sensor expertise to produce a small portable camera producing high resolution images during surgery. Imaging in the operating theatre will aid surgeons plan and complete more effective surgery. The management team includes the head of medical physics research at a large, prestigious teaching hospital.
There are around 8,000 nuclear medicine centres worldwide. Each of these is a potential customer for the new camera, which is expected to sell for about £50,000, giving a total potential market of £400 million. The new device is expected to achieve sales of around £12m pa (250 units) within three years of launch followed by further rapid growth.
A £300,000 investment has been received from the local university challenge fund as well as a £75,000 Grant for R&D. Two prototypes have been built and the good quality images obtained from patient studies at a teaching hospital. £150,000 is required to refine the prototype this year using pilot clinical trials. A further £300,000 will be required in 6-9 months to complete the clinical trials and achieve launch around 12 months from now. An exit is likely to be a sale to a major equipment manufacturer such as one of the three main current suppliers, Siemens, Philips and GE Healthcare..
Contact: Lawrence Fenelon - 07789 204 825 - fenelon@beerandpartners.com
If any of the above deals are of interest to you then please contact the relevant Associate
(listed below each opportunity)
or the Life Sciences Division in general for further information:
lifesciences@beerandpartners.com
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