Absynth will develop vaccines and antibodies to treat infections caused by the bacterium Staphylococcus aureus, including its drug-resistant form MRSA.
Biofusion has agreed to invest up to £325,000 in the company to enable it to produce possible va
ccines and antibodies to begin the clinical trial process.
Hospital acquired infections are an increasing public health concern and are responsible for a rise in the number of hospital deaths.
Absynth's patented technology has been developed at Sheffield University.
David Baynes, Biofusion's chief executive, said: "The rise of the so-called superbugs is a significant challenge for healthcare systems in the UK and internationally. We believe the Absynth approach offers a potentially effective alternative to the use of conventional antibiotics which are no longer able to successfully treat all hospital acquired infections."
The launch of Absynth gives Biofusion a total of 22 companies, with 15 based on research from Sheffield University and seven on research from Cardiff University.
Sheffield-based Biofusion's model is to provide the funding and management know-how that enables universities to make money from research that has commercial implications.
The universities involved get a shareholding in the company. Biofusion would like to sign up at least one more university to complete the first stage of its development.