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Intercytex takeover prepares Axordia for growth
A YORKSHIRE company which could stop millions of elderly people from going blind is poised for rapid expansion under new owners.
Axordia, a spin-out from the University of Sheffield which is developing treatment for eye diseases, has been bought by the Intercytex Group, a developer of regenerative medicine products.
Axordia had been 64.1 per cent owned by Fusion IP, the technology commercialisation company which focuses on work carried out at the universities of Sheffield and Cardiff.
Axordia, in collaboration with The London Project to Cure Blindness, is developing a stem cell therapy to treat age-related macular degeneration, the leading cause of blindness among elderly pepple.
The programme, which also involves the Moorfields Eye Hospital in London, is in the late stages of pre-clinical development.
Following the deal, Intercytex will gain exclusive rights to commercialise stem cell research from The Centre for Stem Cell Biology (CSCB) at the University of Sheffield.
Nick Higgins, Intercytex chief executive, said: "Axordia's leading position in stem cell research, combined with our know-how in producing cell-based therapies to pharmaceutical industry standards, provides a strong platform from which to develop future cell-based therapies.
"The acquisition also provides us with a rich source of future potential pipeline candidates."
David Baynes, the chief executive of Fusion IP, said: "We are very pleased to announce this transaction which combines the Axordia operation with Intercytex and gives Axordia a better opportunity to realise its maximum potential.
"We recognise that Intercytex offers exciting prospects ahead in the stem cell medical arena and believe that the structure of this deal increases the long-term potential for value creation for our shareholders."
Axordia was founded in 2001 by Professor Peter Andrews and Professor Harry Moore and has become one of the UK's leading human embryonic stem cell companies.
Nicholas Sleep, the chief executive of Axordia, said: "Having Intercytex, a leader in regenerative medicine, recognise the potential of Axordia and take forward our research, enables the company to move to the next stage of its development. We look forward to working with Intercytex's world-leading scientific team."
Yesterday, Intercytex said it would issue seven million new shares to buy Axordia.
Based on Intercytex's closing share price of 24p on December 19, the deal values Axordia at about 1.68m.
Intercytex, which is listed on the Alternative Investment Market, uses cell therapy technology to develop products to restore skin and hair.
The company was founded in 2000 and employs 75 staff in Cambridge, Manchester and Boston in the United States.
Praise from Seedcorn fund
Axordia is a spin-out company from the University of Sheffield which is developing, in collaboration with the London Project to Cure Blindness, a stem cell therapy to treat age-related macular degeneration.
There are two types of macular degeneration, or AMD, usually referred to as wet and dry.
Dry AMD is the most common form of the condition.
It develops very slowly, causing gradual loss of central vision.
Wet AMD results in new blood vessels growing behind the retina, which can lead to sight loss.
Axordia has been supported by the White Rose Technology Seedcorn Fund, which invests in technology emerging from the universities of York, Leeds and Sheffield.
David Milroy, of Aberdeen Asset Managers, which manages the White Rose Technology Seedcorn Fund, said: "Axordia is a first-class example of how a relatively young university spin-off company, with the right level of business support and financial backing, can make important technological advancements.
"Its sale to Intercytex will bring about a major development in stem cell applications which will have positive implications for people across the world."
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Thursday 24 May 2012
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