22 Apr 2015 07:00
For immediate release
Media contact:
Christine Dunn
ArcPoint Strategic Communications
617.484.1660, x101
cdunn@arcpointstrategy.com
Allied Minds' Subsidiary SciFluor Life Sciences Raises $30 Million and
Names William Koster, PhD, Former CEO of Neurogen Corp., as Chairman
· SciFluor's recent advancements in its pipeline, comprised of two lead compounds and additional discovery assets using the strategic incorporation of fluorine to create best-in-class drugs, generated investor interest.
· SciFluor's plans to develop fluorine-containing new chemical entities (NCEs) across multiple disease states will benefit from the addition of William Koster, whose accomplishments include success in senior executive roles in small molecule drug discovery and early clinical development at Neurogen Corp. and Bristol-Myers Squibb Co.
Boston, MA (April 22, 2015) - Allied Minds (LSE: ALM), an innovative U.S. science and technology development and commercialization company, today announced that its subsidiary company, SciFluor Life Sciences, has raised $30 million. Proceeds will be used to accelerate its two lead compounds - one a topical treatment for retinal diseases and the second a treatment for neurological diseases - while expanding its drug discovery and commercialization pipeline.
SciFluor also named William Koster, PhD, a seasoned executive in drug discovery research and early clinical development, as Chairman of the Board. Koster previously served as President and Chief Executive Officer of Neurogen Corp., a NASDAQ-listed biotechnology company engaged in neuroscience R&D. He also spent 30 years with Bristol-Myers Squibb Co. in various roles that included Senior Vice President overseeing worldwide drug discovery research and early clinical development through Phase 2a.
SciFluor is focusing its efforts on the strategic use of fluorine to create new drugs with improved potency, selectivity, dosing and metabolic stability across multiple disease states, including retinal disease, CNS disorders, pain, pulmonary and inflammatory disease. The company recently announced the issuance of two U.S. patents for potentially breakthrough lead compounds to treat retinal diseases and epilepsy. Treatments for retinal diseases, such as Age-related Macular Degeneration (AMD) and Diabetic Macular Edema (DME), represent a more than $6 billion market opportunity, and those for epilepsy and related disorders are estimated at more than $7 billion.
"This successful funding round will enable SciFluor to accelerate the development and commercialization of fluorine-enhanced drug therapies," said Omar Amirana, MD, SciFluor's Chief Executive Officer and Senior Vice President at Allied Minds. "We are delighted with the support of our investors and warmly welcome Bill to the Board. His guidance will be tremendously valuable."
Significant participants in the funding round are Invesco Asset Management (Invesco), Woodford Investment Management (Woodford) and Allied Minds, SciFluor's parent company.
SciFluor's two recent patents included one for SF0166, a small molecule integrin antagonist designed to topically treat retinal disease, including Age-related Macular Degeneration (AMD) and Diabetic Macular Edema (DME), via eye drop administration to the surface of the eye. SciFluor also received a patent for SF0034, a potent and selective neuronal potassium channel activator intended to be a significantly improved drug relative to the first-in-class KCNQ2/3 activator drug, ezogabine (POTIGA®). SF0034 is targeted for development in partial-onset epilepsy and potentially for a recently identified orphan disease, a rare disorder known as KCNQ2 pediatric encephalopathy.
"SciFluor is successfully making the transition to a clinical development company. The opportunity to place these innovative discoveries into protocols for clinical testing and development is incredibly exciting, and I'm pleased to be a part of the next stage of this company's commercial development," said Koster.
Of the $30.0 million raised in this financing, Invesco contributed approximately $11.7 million for the purchase of 1,223,269 preferred shares, and Woodford contributed approximately $11.3 million for the purchase of 1,181,448 preferred. Invesco and Woodford are each a substantial shareholder of Allied Minds pursuant to the Listing Rules, and thus this transaction is a smaller related party transaction falling within the scope of Listing Rule 11.1.10R.
Prior to this transaction, Allied Minds' last reported ownership adjusted value (1) in SciFluor was $30.8 million. As a result of this transaction, Allied Minds contributed approximately $4.8 million to SciFluor, the total valuation of SciFluor increased from $37.1 million to $130.7 million (including new invested capital), and the ownership adjusted value of Allied Minds' 69.94% holding in SciFluor increased by $60.6 million to $91.4 million.
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(1) Ownership adjusted value represents Allied Minds' interest in the equity value of SciFluor = (Business Enterprise Value - Long Term Debt + Cash) x Allied Minds percentage ownership
SciFluor will be presenting at a Capital Markets Day event to be hosted by Allied Minds on 28 April at Etc. Venues St. Paul's, 200 Aldersgate St., London. SciFluor will be presenting alongside Allied Minds' subsidiary businesses Spin Transfer Technologies, Federated Wireless, Allied-Bristol Life Sciences and Optio Labs.
About SciFluor Life Sciences
SciFluor Life Sciences is a drug discovery company applying expertise in fluorine chemistry to create a broad portfolio of differentiated therapeutics to treat various diseases. The company creates patentable new chemical entities (NCEs) directed towards precedented biological targets. SciFluor strategically incorporates fluorine or fluorine-containing groups to design drugs with improved pharmacological profiles that provide important benefits over existing therapies such as improved safety, efficacy, dosing, and patient compliance. This capital-efficient and de-risked drug discovery approach has resulted in the generation of a proprietary pipeline of novel and differentiated small molecule drugs across a diverse range of therapeutic categories and disease areas including retinal disease, CNS disorders, pain, pulmonary and inflammatory disease. More information about SciFluor can be found at www.scifluor.com.
About Allied MindsAllied Minds (LSE: ALM) is an innovative U.S. science and technology development and commercialization company. Operating since 2006, Allied Minds forms, funds, manages and builds products and businesses based on innovative technologies developed at leading U.S. universities and federal research institutions. Allied Minds serves as a diversified holding company that supports its businesses and product development with capital, central management and shared services. More information about the Boston-based company can be found at www.alliedminds.com.
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