Circassia initiates phase III trial

4 October 2012

Imperial Innovations Group plc

Circassia initiates phase III trial for cat allergy treatment

Imperial Innovations Group plc (AIM: IVO, 'Innovations', or 'the Group'), a leading technology commercialisation and investment company, announces that its portfolio company, Circassia has initiated a pivotal large-scale phase III clinical study of its ToleroMune® cat allergy treatment.

Allergies are a significant global health issue. Tens of millions of people are allergic to cats in the United States and Europe, and the disease can have a major effect on patients' quality of life. Currently no short, simple treatment with long-lasting impact on the disease is available.

Circassia's phase III multinational study will test safety and efficacy of the ToleroMune® treatment in approximately 1,200 subjects from the United States, Canada and Europe. It follows positive phase II results published last month, which showed that patients had a significantly greater reduction in symptoms compared with placebo one year after the start of the study, despite only receiving a four-dose course of treatment over 12 weeks.

Allergic rhinoconjunctivitis (ARC) affects 30% of adults and 40% of children in developed countries, and the prevalence is rising. In Continental Europe and the US, cat-allergen induced ARC, for which the ToleroMune® cat allergy treatment is designed, is one of the commonest forms and affects 10-15% of those with ARC or asthma.

Circassia has successfully completed five investment rounds to date, raising a total of £105m for the development of a range of ToleroMune® allergy treatments based on an approach of using synthetic allergen-derived peptides to induce immune tolerance by generating regulatory T-cells that suppress allergic immune responses.

Circassia has now completed phase II studies with its four leading treatments for cat, grass, house dust mite and ragweed allergies validating the Company's scientific approach. The cat allergy study is expected to complete in summer 2014.

Susan Searle, CEO of Imperial Innovations said:

"Circassia is one of our most advanced companies. We are pleased to see the Company continuing to deliver with the significant resources it has following the £72m fundraisings we led over the last 18 months. Taking its lead treatment into the advanced stages of clinical trials is a major milestone, and demonstrates the value being created in our portfolio, and the quality of the enterprises in which we invest."

Steve Harris, Circassia's CEO said:

"Circassia's goal is to revolutionise the treatment of allergy, and the start of this phase III study is a major strategic milestone in this endeavour. We believe our ToleroMune®technology has the potential to address the major unmet medical need for a short, simple treatment with long-lasting impact on cat allergies, and our initiation of the final phase of clinical development demonstrates our commitment to helping improve patients' lives."

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Notes to editors

Imperial Innovations - www.imperialinnovations.co.uk 

Innovations creates, builds and invests in pioneering university technologies addressing global problems in healthcare, energy, engineering and the environment. It combines deep understanding of science and technology with commercial acumen and strong investment expertise.

Innovations supports scientist-entrepreneurs in the commercialisation of their ideas by:

·; leading the formation of new companies and providing facilities in the early stages

·; providing significant investment and encouraging co-investment to accelerate the transition from R&D to products

·; providing operational expertise

·; helping to recruit high-calibre industry figures and experienced entrepreneurs as executive management and Board members

Innovations invests in companies based on technologies from or associated with four universities: Imperial College London; and Cambridge University, Oxford University, and UCL supported by its collaborations with Cambridge Enterprise, OSEM and UCL Business. These are the UK's leading research intensive universities, measured by research income.

By raising £140 million in January 2011, Innovations has been able to accelerate the making of, and increase the size of its investments. In the year to 31 July 2011, Innovations invested £35.1 million (2010: £14 million) in 23 ventures, and launched six new companies.

In its current portfolio of 78 companies, Innovations' most advanced assets include Circassia, which develops innovative treatments for a wide range of allergies; and Nexeon, a battery materials and licensing company which develops silicon anodes which extend the life and increase the capacity of lithium-ion batteries.

About Circassia

Circassia was founded by a team of highly experienced biotechnology scientists and entrepreneurs, and is chaired by the former Chairman of GlaxoSmithKline, Sir Richard Sykes. The company is based in the UK on the Oxford Science Park, and its joint venture with McMaster University (Adiga Life Sciences Inc) is located in Hamilton, Canada. Circassia's ToleroMune® technology was developed originally by scientists at Imperial College, London. Having successfully completed five fundraising rounds, Circassia has raised approximately £105 million ($178 million) and is backed by a syndicate of world-class institutional investors, including Imperial Innovations and Invesco Perpetual.