fusion IP, the listed Yorkshire company that turns university research into business, has signed a license deal with a pharmaceutical company which is hoped will lead to royalties of £1m a year.
Fusion said Sheffield University will provide intellectual property to the unnamed firm for the development of a drug for treating endocrine diseases, a market worth more than $500m per annum.
The drug is already being marketed for a different treatment and is expected to be a big success when it launches by 2016.
Dr Andrew Tingey, head of licensing at Fusion, said: “This is an excellent licence for Fusion and demonstrates the value that can be unlocked through licensing the non spin-out opportunities within the Fusion pipeline.”
David Baynes, CEO of Fusion IP, added: “This is more excellent news for Fusion.
“At peak sales the revenue generated from this single agreement will cover most of Fusion’s net annual overheads and is a great example of the tremendous value within our pipeline agreements with Sheffield and Cardiff.”