Biofusion Trade Sale of Cardiff Protides and Cardiff Biologicals
10 October 2007
Biofusion plc the university IP commercialisation company that turns world class research into business, has announced the trade sale of two of its portfolio companies, Cardiff ProTides Ltd (“ProTides”) and Cardiff Biologicals Ltd (“Biologicals”) in each of which Biofusion had a 50 per cent shareholding, to Morvus Technology Ltd (“Morvus”), a privately owned pharmaceutical company specialising in the discovery and development of novel oncology therapies. As a result of the sale Biofusion now owns 13,698,630 shares in Morvus, giving it a 20% shareholding in the enlarged Morvus group. Morvus has raised over £3.4 million in equity finance to date and its most recent funding, largely concluded in July 2007, valued Morvus at approximately £12m, based on a price of 30p per share. The directors of Biofusion and Morvus believe the integration of the ProTides and Biologicals pre-clinical product portfolio into Morvus’ existing product pipeline has created a company with the critical mass to be a key player in the oncology sector of the pharmaceutical market.
Following the sale of these two companies Biofusion has a remaining portfolio of 23 companies from its partnerships with The University of Sheffield and Cardiff University.
Commenting on the trade sale of these two portfolio companies, David Baynes, Chief Executive Officer of Biofusion, said: “Morvus’ expertise in oncology based pharmaceutical development convinced us that the new combined company could be a world leader in the provision of specialist oncology drugs and provided the best opportunity for bringing ProTides and Biologicals’ exciting lead compounds to market. The valuation of the transaction is based on Morvus’ last funding round and given that these shares were privately held, we will take a conservative view to recognising this value in Biofusion’s accounts. Our intention will be to re-evaluate this value at Morvus’ next third party funding round. However we believe the combined group is well placed to realise an increased value for its shareholders.”
Also commenting on the announcement, Dr Phil Burke, Chief Executive Officer of Morvus (www.morvus.com), said: “We are extremely pleased with the acquisitions of ProTides and Biologicals. The quality of IP generated from Biofusion’s portfolio is particularly strong and we are excited by the technology in both companies. The two businesses perfectly complement our existing product portfolio and we look forward to advancing their candidate drugs towards patient trials and commercialisation.”