Innovations leads £6m funding round in Auspherix

3 June 2015

Imperial Innovations Group plc

Innovations leads £6m Series A funding round in Auspherix

Imperial Innovations Group plc (AIM: IVO, 'the Group', 'Innovations') has led a £6m Series A funding round in Auspherix Limited (UK) ("Auspherix" or "the Company"), an early-stage anti-infectives company originated in Sydney, Australia, that is establishing operations on the Stevenage Bioscience Catalyst site just outside of London. Innovations has committed £3m into the Company alongside founding investor Australia's Medical Research Commercialisation Fund (MRCF). Innovations now holds a 27.5% stake in the company.

Auspherix was founded in Australia in late 2013 based on discoveries made at the ithree institute, University of Technology Sydney (UTS). As of April 2015, the Company has been incorporated in the UK, where it has ongoing collaborations with academic institutions.

Auspherix has discovered a new class of antibacterial compounds with broad-spectrum activity against multi-drug resistant Gram-negative and Gram-positive bacteria. Auspherix's compounds have a unique microbiological profile and are highly differentiated over current antibacterial drugs.

The investment will be used to fund the Company's drug discovery programme and grow the company from its virtual base adding experienced management and recruiting a world-class microbiology team. The Company aims to progress its novel class of anti-bacterials, which have a unique profile and novel mechanism of action, through lead optimization to candidate selection within the next two years.

Dr Roberto Solari, a recently appointed Venture Partner at Imperial Innovations has joined the Board of Directors as its independent non-executive Chairman. Previously Vice President in GSK's UK-based Respiratory Therapy Area he is currently senior research fellow in the National Heart and Lung Institute, Imperial College London, focusing on respiratory infections.

Dr Jonathan Tobin, Healthcare Ventures, Imperial Innovations who has also joined the Board of Auspherix commented:

"Auspherix is an exciting and novel opportunity to address an antibacterial market that has seen a recent resurgence of innovation and industry interest, at a time of rapidly growing medical need.

"The funding will allow the company to build its Stevenage-based R&D team and rapidly advance its first-in-class antibacterial compounds towards the clinic.

"The management team is world-class and has demonstrated impressive productivity since formation a little over a year ago."

For further information contact:

Notes to editors

About Imperial Innovations - www.imperialinnovations.co.uk 

Imperial Innovations Group plc creates, builds and invests in pioneering technologies developed from the academic research within the 'Golden Triangle' broadly bounded by London, Cambridge and Oxford, which is home to the UK's four leading research-intensive universities.

This area is home to many new technology companies through its proximity to the academic communities of Imperial College London, the University of Cambridge, the University of Oxford and University College London, as well as other leading research institutions.

Imperial College London, the University of Cambridge, the University of Oxford and University College London collectively have research income of £1.4 billion per annum and are ranked as four of the top ten Universities in the world (source: QS World University Rankings 2014/15).

Innovations supports scientists and entrepreneurs in the commercialisation of their ideas through the licensing of intellectual property, by leading the formation of new companies, providing facilities in the early stages, providing investment and encouraging co-investment to accelerate development, providing operational expertise and recruiting high-calibre management teams. It also runs an incubator in London that is the initial home for many of its technology spin-outs.

Since admission of its shares to trading on AIM in 2006, Innovations has raised more than £346.0 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 a £30.0 million loan facility from the European Investment Bank (EIB) for investment in biotech and therapeutics businesses.

During the period from admission on AIM up until 31 January 2015, Innovations has invested a total of £198.3 million across its portfolio companies, which have raised collectively investment of £926.8 million rising to £1.0 billion including post period end investments and commitments.

About Auspherix Ltd - www.auspherix.com 

Auspherix Ltd has discovered a brand new class of anti-bacterials with a unique profile and novel mechanism of action that could overcome rising problems of resistance to current antibiotics. Its compound series show activity against a broad range of multidrug resistant (MDR) important Gram-negative and Gram-positive bacterial, with PK profiles consistent with their use as antibacterial drugs for a number of indications with high unmet need and large market potential. In vitro, the compounds have shown ability to kill Gram-positive bacteria growing in biofilms, as well as disrupt previously formed biofilms. They also show ability to kill persister cells growing inside host cells.

Based in Stevenage UK (in the Stevenage Bioscience Catalyst facility), the Company was founded in late 2013 based on discoveries made at the ithree institute at the University of Technology Sydney (UTS).