- GBP13.1 Million Funding to Drive Novel Antibiotics Platform AddressingAreas of Major Unmet Need, Including Hospital Acquired Infections C.Difficile and MRSA
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Celtic Pharma Holdings Advisors LLP ("CPHA"), the advisor to the secondCeltic Pharma fund, Celtic Pharma Holdings II LP ("CP2"), today announces itsinvestment in a majority shareholding in Novacta Biosystems Limited("Novacta"), which is developing a portfolio of antibiotics. The total beingraised is GBP13.1m ($21.6m), payable against pre-agreed milestones. As partof this investment certain existing investors are re-investing.
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Novacta is a UK-based company developing novel, naturally-derivedproducts known as 'lantibiotics' as potential drugs. Lantibiotics have potentanti-infective properties but have historically been underexploited owing toa lack of research tools, a challenge that Novacta has successfully addressedthrough its proprietary technology platform. The most advanced programme willenter the clinic next year to treat infections caused by Clostridiumdifficile ("C. difficile"). The Wellcome Trust has provided in the order ofGBP4m of translational funding to Novacta since 2004 for the development ofthe platform technology and more recently the C. difficile programme.
New anti-infective drugs are needed to target C. difficile withoutdepleting other beneficial bacteria in the gut and preclinical data show thatNovacta's lead lantibiotics selectively kill C. difficile with lessdisturbance of normal gut bacteria than seen with existing drugs. C.difficile infections (CDIs) are a serious problem: the number of cases grewby 22 percent in the UK last year, accounting for twice as many deaths asMRSA.
Novacta's pipeline also includes programmes targeting other areas ofunmet medical need in bacterial infection. These include novel promisinglantibiotic candidates in pre-clinical testing for the treatment ofGram-positive infections including MRSA and novel broad spectrum bacteriocinsfor the treatment of both Gram-positive and Gram-negative infections.
Following the completion of the investment, Novacta will appoint Dr.Richard Garraway and Dr. Bob Milsted, both partners of CPHA, to its Board ofDirectors. In a further Board change, the Chairman Dr. Andrew Sandham willretire from the Board on completion and will be replaced by Dr. AndyRichards. The new directors bring significant drug development, financial andcorporate development experience to Novacta.
Commenting on the investment, John Mayo, Managing Partner of CP2 said:"The urgent need for new antibiotics is well known, Novacta represents a realopportunity to meet this significant unmet medical need in C. difficileinfection, MRSA and related Gram-positive infections and Gram-negativeinfections, such as E. coli and Salmonella. Our investment in Novacta fitsour model of taking a majority position in high quality companies with welldifferentiated technologies and bringing both funding and additionalcommercial, regulatory, drug development and manufacturing experience toincrease both the probability of success and the value of the products. Weare looking forward to working with the dynamic management team at Novactaunder Tony Sedgwick, producing important new antibiotics and a great returnfor existing Novacta shareholders and Celtic Pharma investors alike."
Stephen Parker, a Partner in CP2 added: "This is the second in a seriesof major investments in high-quality UK biotech companies. We were delightedto see the announcement from the UK Government this week of the creation ofthe Innovation Investment Fund-of-funds to invest in technology-basedbusinesses and we look forward to helping the Government fulfil its ambitionsin the UK life science sector as we continue to invest. CP2 is currentlyassessing several further opportunities to invest in attractive, high-growthpotential UK companies."
Dr. Tony Sedgwick, Chief Executive Officer of Novacta said: "We haveworked closely with CP2 to consummate this investment, one of the largest inEurope this year. We have made great progress with our technology platformand pipeline and now have the funds to accelerate development. In particular,access to the expertise at CP2 will ensure that we develop drugs to thestandards looked for by big pharma and maximise their commercial value. Iwould like to thank Andy Sandham for his leadership and wise counsel as ouroutgoing Chairman and welcome Andy Richards to the role. We are also pleasedthat Richard and Bob are joining the Board from CP2."
Notes to Editors
About Celtic Pharma Holdings Advisors LLP
Celtic Pharma Holdings Advisors is a global private equity fundmanagement partnership focused on the biotechnology and pharmaceuticalindustries. Our second fund, Celtic Pharma Holdings II LP, invests incompanies which own proven technology platforms and early clinicaldevelopment-stage pharmaceutical programmes and directs the management ofthese programmes through their development prior to sale at proof of conceptwith appropriate efficacy and safety data (usually at end of Phase IIclinical trials).
CP2 has already attracted investment from sovereign wealth funds, pensionfunds and high net worth individuals from many countries and continues toraise further capital. For further information, please visit our website atwww.celticpharmaholdings.com.
About Novacta Biosystems Limited
Novacta is a UK-based biotechnology company that specialises in thediscovery and development of potential treatments for infectious diseases.Novacta's lead programmes are centred around a class of small peptidemolecules called lantibiotics, a drug class that, until now, has beenunderexploited due to the lack of adequate research tools. Novacta'slantibiotic platform has given rise to a number of potential drug candidates,including those in the C. difficile programme. Other programmes include onetargeting methicillin-resistant Staphylococcus aureus (MRSA) infection andothers targeting Gram-negative infections. For further information, pleasevisit our website at www.novactabio.com.
About Lantibiotics
Lantibiotics are a naturally occurring class of antibiotic peptidecompounds found in a large number of bacteria. They take their name from thelanthionine amino acids found within their structure ( lanthionine-containingantibiotics). Lantibiotics have demonstrated potential to treat infectionscaused by agents such as C. difficile and MRSA. Conventional medicinalchemistry has been unable to manipulate the structure of the naturallyoccurring compounds into the optimised forms that have the potential to treathuman disease. However, Novacta's proprietary technologies allow thestructural manipulation and optimisation of activity which is necessary tounlock the potential of this novel and under-exploited class of compounds.Please contact with enquiries: Celtic Pharma Holdings Advisors John Mayo / Stephen Parker LLP Tel: +44(20)7291-5456 [email protected] Novacta Biosystems Ltd. Georg Buchner VP, Corporate & Business Development Tel: +44(0)1707-356130 [email protected] Citigate Dewe Rogerson Limited David Dible / Chris Gardner Tel: +44(0)20-7638-9571 [email protected] / [email protected]
SOURCE Celtic Pharma Holdings Advisors LLP
