FUSION IP has made its first major “exit”, selling simulation firm Simcyp to a US drug firm for about £20m ($32m) to net hefty gains.
The Sheffield-based group, which turns university research into business, said selling Simcyp to Certara will earn it about £4m from its 20 per cent stake.
Simcyp was spun out of the University of Sheffield and helps drug firms model the effects of therapies on virtual populations. It made £1.9m post-tax profits in its latest financial year.
Fusion chief executive David Baynes said: “We are delighted to announce our first significant exit from our growing portfolio of companies.
“Simcyp is a world-class software company and the 200 fold return we have made on our investment amply demonstrates the excellence of our university pipeline agreements and the value that can be extracted from these exclusive relationships.”
Certara LP is a leading drug discovery, development software and scientific consulting firm. The deal is due to complete on February 29.
Fusion chairman Doug Liversidge said: “We would like to take this opportunity to thank the management and staff of Simcyp, who have built this excellent company since our first involvement in 2005.
“During this time, they increased profits and turnover in every year of our association with them and we wish them and the newly combined company every success for the future.”