AMP.L Regulatory News (AMP)

21 Sep 2005 07:00

Amphion Innovations PLC21 September 2005 Amphion Innovations PLC acquires 29% stake in award winning Durham University spin-out company London, England, September 21 2005: Amphion Innovations PLC, the recently listeddeveloper of life sciences and technology businesses, announces it has invested£1 million in Durham Scientific Crystals Ltd (DSC), a Durham University spin-outcompany developing next generation semiconductor materials for medical andsecurity imaging markets. DSC produces radically improved and more cost effective semiconductor materialsthan are currently available, which are used in detectors for medical, securityand defence digital x-ray imaging. These materials have the potential torevolutionise the medical x-ray imaging market by enabling the transition fromanalogue to digital, dramatically improving the screening of baggage in airportsand railways, and allowing the manufacture of in-demand handheld scanners. DSChas a strong and growing IP (patent) portfolio. The diagnostic imaging market is a $70 billion industry in the US, representingapproximately 10% of all expenditures for medical care. X-ray based systemsdominate the diagnostic imaging market in terms of growth and revenue, with overa 50% share, so the transition to digital X-ray imaging represents enormousmarket potential. Amphion's investment in DSC represents the first fully external round offunding, after an earlier angel funding round by members of the management team.The investment will give Amphion a stake of 29% on a fully diluted basis andwill secure ownership of key technology currently under exclusive licence fromthe University to DSC. Other shareholders are the University of Durham andDSC's founders. This investment will allow DSC to further develop its technologyand patent portfolio and build up its management and marketing teams. Amphion'sparticipation will also accelerate access to key US markets. This is Amphion's first investment in a UK based university spinout since theirrecent AIM flotation. Amphion's senior management team played a key role forMedisense, one of the UK's most successful University spin-outs. Based ontechnology from Oxford and Cranfield universities, it was sold to AbbottLaboratories for $900 million in 1996. DSC's initial products are in the area of Cadmium Telluride based x-raydetectors. Arnab Basu, CEO of DSC said: "Cadmium Telluride has long beenaccepted as the electronic x-ray detection material of choice in many keyapplications. We are the first in the world to develop a process for producingpredictably high quality and large area material for detectors with high yieldsand greatly improved production economics. Our unique technology arrives as ourtarget international markets are moving to digital detection." Max Robinson, a substantial angel investor in DSC and a recognised nationalexpert on x-ray imaging, said: "Working with Amphion as a development andinvestment partner has been a refreshing contrast to some of my past experiencesas an entrepreneur. In addition to providing the early stage investment, we feelwe will benefit greatly from Amphion's hands-on partnership approach to companybuilding, their extensive track record in developing medical technologycompanies, and their access to US markets. Prior to this investment, we havebeen actively working with Amphion to develop our IP portfolio, driven by afocus on emerging market needs." Richard Morgan, CEO of Amphion Innovations PLC, added: "DSC is illustrative ofthe high quality of business that can be created from IP in UK Universities whenworking with the right development partners. We are delighted to own asignificant share in such an exciting company. The detector sub-systems marketsthat our technologies can address is estimated to be worth $2 - 3 billion by2010." Enquiries: Amphion Innovations PLC UK office: +44 (0)20 7016 8821Richard C. E. Morgan, CEO US office: +1 212 210 6282 Jerel Whittingham, Managing Director, Amphion +44 (0)7779 095 604Innovations UK ltd Financial Dynamics +44 (0)20 7831 3113Ben Atwell / John Gilbert About Amphion Amphion Innovations plc recently listed on the AIM Exchange in London under thesymbol AMP. Amphion's business is the formation, financing, management anddevelopment of life science and technology companies, working in partnershipwith corporations, governments, universities and entrepreneurs seeking tocommercialise their intellectual property. www.amphionplc.com About Durham Scientific Crystals ltd. Durham Scientific Crystals (DSC) is a spin out company from the PhysicsDepartment of the University of Durham. Formed in April 2003, it has developedproprietary semiconductor materials and production processes. The company hasacquired worldwide exclusive rights to commercially exploit technologiesdeveloped in the University through research over the last 3 decades and israpidly growing its own IP portfolio. DSC's developing products are well matched to meet the emerging demands inelectronic x-ray imaging which is undergoing a change analogous to the move todigital in the home photography market. In medicine for example, users haveturned to digital X-ray image capture because it improves the capabilities fordiagnosis and treatment of patients. The digital systems convert X-rays directlyand electronically into high definition images that can be viewed in real time,enhanced and analysed by computer, stored in a more cost effective manner andretrieved and transmitted when required. Cadmium telluride and related compounds (such as cadmium zinc telluride andcadmium mercury telluride) have long been known to be the ideal detectors forsuch systems. However, before DSC and its revolutionary process, they were verydifficult to grow into the high quality crystalline structures required.Presently, the only suppliers of these specialty materials are supplying atextremely high prices, more expensive per gram than gold, and in very small andinconsistent quantities. The material is already in demand in spite of thesedifficulties because of its greatly superior properties Driven by increasing number of procedures requiring diagnostic imaging and bythe enormous replacement market for many older film based devices the digitalx-ray system markets have been experiencing market growth of up to 20 -30% peryear in recent years. There are many types of device and application, thedigital flat panel x-ray detector market alone worldwide will be over $500million in 2006 and is growing at 20 percent per year. The specificapplications, which DSC is particularly well placed to serve, like digitalradiography equipment, will be among the fastest growing segments. DSC enabled X-ray devices will allow lower dosages given to patients and faster,higher definition, higher information-content images from more cost effectivedetectors. There will also be major opportunities in homeland security includingmore rapid and accurate baggage scanning and new generation hand held scanners,in non-destructive testing (NDT) in industry and in high quality Infraredimaging systems, used in defence and elsewhere. The company, which won regional technology company of the year award in May2005, is featured in a national and international publicity campaign by theregional development agency One Northeast, beginning in the Financial Times onSeptember 8th, as a prime example of world class innovation originating fromuniversities in the North-east region of England. It has recently moved intodedicated facilities at NetPark, the flagship Technology Park in the region. For more information contact Arnab Basu, CEO direct on 01740625255 or mobile07714764203 www.dscrystals.com This information is provided by RNS The company news service from the London Stock Exchange