Innovations invests in Cell Medica funding round

16 March 2017

Touchstone Innovations plc

Innovations invests £13.7m in £60.0m funding round in Cell Medica

Touchstone Innovations plc (AIM: IVO, 'the Group', 'Innovations') has participated in a £60.0m funding round in Cell Medica Limited ("Cell Medica" or "the Company") committing £13.7 million to the round alongside co-investors Invesco Asset Management and Woodford Investment Management.

Cell Medica is a cellular therapeutics company engaged in the development, manufacturing and marketing of cellular immunotherapy products for the treatment of cancer. Cellular immunotherapy is a novel form of medical treatment which has the potential to transform the treatment of cancer in the years ahead. Cell Medica is developing a range of cell-based immunotherapy products using three proprietary technology platforms including activated cytotoxic T cells, chimeric antigen receptors (CARs) and engineered T cell receptors (TCRs).

The Company's lead oncology product (CMD-003) is an investigational therapy in which the patient's T cells are activated to kill malignant cells expressing EBV antigens. The product is being investigated in the international open label Phase II CITADEL clinical trial for patients with extranodal natural killer T cell lymphoma (ENKTCL), a type of non-Hodgkin lymphoma. Cell Medica has also opened the Phase II CIVIC clinical trial to explore the potential benefits of CMD-003 for patients with EBV-positive diffuse large cell lymphoma (DLBCL), Hodgkin lymphoma, and post-transplant lymphoproliferative disease (PTLD).

As at 31 July 2016, the Group had a 25.5% interest in the issued share capital of Cell Medica with such interest having a net fair value of £28.5 million. Following this new investment Innovations will hold a 24.5% stake in the issued share capital of the Company.

Russ Cummings, CEO of Touchstone Innovations, said:

"The use of human T cell subset as therapeutics has the potential to revolutionise the way cancer is treated and we are delighted to be supporting Cell Medica in this round.

"Over the last six months or so Cell Medica has significantly broadened its product portfolio through striking new partnerships with Baylor College of Medicine and UCL, and through the acquisition of Delenex Therapeutics. The business now has a pipeline addressing both liquid and solid cancers and this new funding will put it in a great position to drive forward these development programmes."

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About Touchstone Innovations - www.touchstoneinnovations.com

Touchstone Innovations plc (formerly Imperial Innovations Group plc or just "Innovations") creates, builds and invests in pioneering technology companies and licensing opportunities developed from outstanding scientific research from the 'Golden Triangle', the geographical region broadly bounded by London, Cambridge and Oxford.

This area has an unrivalled cluster of outstanding academic research and technology businesses, and is home to four of the world's top 10 universities, as well as leading research institutions, the cream of the UK's science and technology businesses and many of its leading investors.

Innovations supports scientists and entrepreneurs in the commercialisation of their ideas through protecting and licensing out intellectual property (through its Technology Transfer subsidiary, Imperial Innovations), by leading the formation of new companies, by recruiting high calibre management teams and by providing investment and encouraging co-investment. Innovations remains an active investor over the life of its portfolio companies, with the majority of Innovations' investment going into businesses in which it is already a shareholder.

Since becoming a public company in 2006, Innovations has raised more than £440 million of equity from investors, which has enabled it to invest in some of the most exciting spin-outs to come out of UK academic research. In addition, the Group has agreed £80.0 million in loan facilities from the European Investment Bank (EIB).

Between Innovations' admission to AIM (August 2006) and 31 July 2016, Innovations has invested a total of £306.7 million across its portfolio companies, which have collectively raised investment of £1.5 billion.