Fusion division secures product funding

Sheffield-based Fusion said that Asalus is developing three devices that will improve the safety and efficiency of laparoscopic surgery, a surgical technique in which abdominal operations are performed through small incisions.

More than two million laparoscopic operations are performed in the US every year, many to help reduce the growing problem of obesity in North America.

The 510,000 funding round includes investments from existing investors Fusion (220,000), Finance Wales (220,000), and IP Group (60,000).

Following the fundraising, Fusion will have a 43 per cent shareholding in Asalus.

David Baynes, chief executive of Fusion IP, said: "We are delighted with Asalus' progress. They have met all their development milestones to date and the customer reaction to the instruments has been particularly strong."

Dominic Griffiths, the chief executive of Asalus, added: "We continue to believe that there is a gap in the market for a specialist incubator and developer of innovative medical devices, particularly in the minimally invasive surgery market.

"We look forward to 2011 with confidence."

Fusion is considering selling some of its promising university spin-out companies as its portfolio begins to reach maturity.

It has stakes in 23 university spin-outs from its exclusive deals with Sheffield and Cardiff universities.

The group cut pre-tax losses for the 12 months to the end of July by more than two thirds and vastly increased revenues.

Fusion said pre-tax losses totalled 1.6m for the year, compared with a 5m deficit a year earlier.

Revenues and portfolio returns surged to 4.4m, compared with just 561,000 a year earlier. Some 2.6m of this gain was down to portfolio companies increasing in value.

Of its companies, Sheffield-based Simcyp was the most profitable, growing earnings by 42 per cent to 1.7m and sales by 21 per cent to 4.7m.

The firm, which employs about 50 staff, simulates how the body deals with new drugs in development.