Beeson Gregory’s subsidiary group IP2IPO, has spun out its second healthcare venture from the chemistry department at Oxford University.
“We are not always going to do two a month,” said Chris Wright, CEO at IPO2IPO. “But we are gaining momentum and this gives us an indication of what’s to come.”
The latest spinout is Pharminox, a research venture developing platinum-based drugs for the treatment of testicular, ovarian and colorectal cancer. It has raised £750,000 in new shares through a placing by Beeson in return for a 20.8 per cent stake.
IP2IPO is hoping to raise further capital for the venture in the next 15-18 months, to enable it to conduct further product trials, said Wright, who added that a commercial product is expected some time in the next five to seven years.
Pharminox is developing a platinum-based drug to treat testicular, ovarian and colorectal cancer. What marks the drug out is that it may help avoid the unpleasant side effects many of today’s drugs cause during treatment. According to IP2IPO, this gives it a good chance of seizing a healthy slice of the growing billion-pound market for platinum-based drugs.
Beeson recently increased its investment in IP2IPO to £20m, which some deemed to be extravagant given the current market conditions, but its deal with Oxford, may yet see the company reap substantial rewards.
The firm has signed terms with Oxford lasting until November 2015, in which it gets 50 per cent of the University’s equity in companies spun out of its chemistry department as well as 50 per cent of the University’s revenue arising from the licensing of the chemistry department’s intellectual property. The other spinout on the firm’s books is Inhibox, a company developing drug design software.
For the moment however, IP2IPO has no immediate plans for further spinouts. “We have a number of projects in mind, but no idea at the moment when any of them will come to fruition,” said Wright.