Investment in Stanmore

20 July 2011

Imperial Innovations Group plc

Imperial Innovations invests £4m in Stanmore Implants

Imperial Innovations Group plc (AIM: IVO, 'Innovations', or 'the Group'), the UK's leading technology commercialisation and investment company, has made a £4 million investment in Stanmore Implants, a specialist in the design and manufacture of patient specific implants for complex orthopaedic reconstructions. Following the investment, Innovations will hold a substantial stake in Stanmore Implants.

The proceeds will be used to expand Stanmore's US and UK sales forces for its current products including the Juvenile Tumour System ("JTS"), a non-invasive extendable implant, and to support Stanmore's development of its innovative and differentiated new technologies; the Savile Row System, the world's first fully personalised early knee replacement surgery system, and ITAP, a novel approach enabling the direct attachment of an exoprosthesis to the skeleton of amputees.

Stanmore was originally founded as a spinout from University College London, before being bought by a syndicate of investors led by Abingworth and MDY Healthcare plc in 2008. The Savile Row Systemis based on intellectual property developed at Imperial College London, around which a new business, Acrobot, was launched. Acrobot, in which Innovations was an original investor, was acquired by Stanmore in August 2010. 

In July 2010, Innovations also signed an exclusive global license with Stanmore Implants for an anatomic knee implant developed by Justin Cobb, Professor of Orthopaedic Surgery and Andrew Amis, Professor of Orthopaedic Biomechanics at Imperial College London. The implant design closely mimics human anatomy and offers the potential for less invasive procedures with greater tissue conservation and associated improved outcomes.

John Holden, Director of Investments at Innovations, is joining Stanmore's Board as a non-executive director.

Susan Searle, Imperial Innovations' CEO, said:

"This is an ideal opportunity for us to invest in a more developed business where we know and understand the value creation opportunities, particularly as some of the original IP emanated from two of the four universities on which we are focused.

"We have worked closely with the Stanmore management team for some time and with our extensive knowledge of their business we are well positioned to support them as they enter the next stage of their development."

Brian Steer, Chairman of Stanmore Implants Worldwide, said:

"We are delighted to welcome Imperial Innovations to our shareholder base. Whilst we have a solid core business generating increased revenues, we now have the funds to accelerate the development of our new, groundbreaking technologies and drive the commercialisation of our non-invasive extendible implants in the UK and US."

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Notes to editors

Innovations creates, builds and invests in pioneering 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; and

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

In December 2010 Innovations raised £140m to accelerate the making of, and increase the size of, investments in companies established under its existing intellectual property pipeline agreement with Imperial College London. The Group also intends to invest in companies founded by or based on technology from the University of Oxford, the University of Cambridge and University College London.

Innovations has already achieved significant success with its early investments; for example its £1.5m investment in obesity drug developer Thiakis could return up to £22m, following its sale for £100m in 2008, while the sale of Respivert, a small molecule drug discovery company, resulted in Innovations realising £9.5m, a 4.7x return on investment.

·; In the year to 31 July 2010, Innovations invested £14.0m in 20 ventures, helping to launch three new companies. With a technology portfolio of more than 80 companies, Innovations' most advanced assets include:Circassia: Innovative vaccines for the treatment of a wide range of allergies

·; Nexeon: Advanced materials that extend the cycle life and significantly increase capacity of rechargeable batteries

·; Veryan: Stents inspired by the human vascular system

·; PsiOxus Therapeutics: Developing a pipeline of small molecule therapeutics for the treatment of wasting diseases and cancer.

·; Polytherics: Biotechnology company that applies precision chemistry to develop protein and peptide-based drugs

·; Cellmedica: Cell therapy company working on new techniques to cure human diseases based on cellular immunotherapy

·; Evo Electric: Develops and manufactures advanced electric machines, hybrid drive trains and generator sets for a wide range of transportation and mobile power applications

Stanmore Implants Worldwide

Stanmore Implants Worldwide is an innovative orthopaedic business focused on the design and manufacture of both bespoke and modular implants for limb sparing and complex primary and revision joint replacement.

Stanmore designs, manufactures and markets a custom implant service alongside a portfolio of orthopaedic implants for limb salvage and complex joint replacement, and is known for creating some of the world's most successful implants.

Stanmore acquired its robotic bone preparation technology through the acquisition of Acrobot, a medical devices company specialising in computer assisted orthopaedic surgery in August 2010.