About emda
News and events
Latest news
Publications and links
Vacancies
Procurement
Business support and investment
Innovation
Employment, learning and skillsCritical Pharmaceuticals Ltd named as Fund’s first investment
18/12/2006
Critical Pharmaceuticals Limited, the Nottingham-based early stage spin-out company, is the first to receive investment from the new East Midlands Early Growth Fund. Officially launched by East Midlands Development Agency (emda) in November 2006, the Fund aims to invest in start-up and early-stage businesses based in the region.Critical Pharmaceuticals, a University of Nottingham spin-out company, is based at BioCity in Pennyfoot Street, Nottingham. The company, led by Dr Alan Raymond (Chairman) and Professor Steve Howdle (Chief Scientific Officer), is commercialising research in high pressure CO2 polymer technology.
With a focus on highly active drug delivery systems, the research team at Critical Pharmaceuticals is developing new methods for the formulation of proteins and other drugs into controlled release dosage forms using approved biodegradable polymers.
For traditional drug systems - delivering, for example, human growth hormone or beta-interferon - it is feared that current processing methods may leave toxic solvent residues in the body and potentially cause damage. Critical Pharmaceuticals aims to solve these problems with a simple, one-step, biodegradable, patented formulation process.
Professor Steve Howdle, Chief Scientific Officer of Critical Pharmaceuticals Ltd, said: “Although we have done a great deal of work on the technology involved, we have yet to fully develop our products and therefore make any sales. We realise that our investors are backing us at a risky stage in our development so are extremely pleased to have been able to access funding in the amounts required at this early stage. This will give Critical Pharmaceuticals the push needed to really achieve commercial success and high growth, as well as ensuring healthy returns for all.”
The East Midlands Early Growth Fund was approved by emda’s Board in December 2005 and following a competitive tender process, emda appointed E-Synergy Limited in September 2006 to manage the fund. With a proven track record in the ‘equity gap’ market, E-Synergy has plans to invest the £5m fund over the coming 5 years in start-up and early stage companies based in the region.
The aim of the new fund is to help young companies to access growth funding of between £20,000 and £200,000 – a level at which private sector venture capital funds do not normally operate (typical minimum level £2m). Every £1 invested by the fund will be matched by at least £1 from Business Angels (individual private investors); bringing much wanted private investment into the region.
The opportunity to invest in Critical Pharmaceuticals was brought to E-Synergy in early November 2006. Critical Pharmaceuticals’ business planning process had earlier concluded the company needed both seed and early growth finance. The Early Growth Fund investment follows seed investments made by the East Midlands Regional Venture Capital Fund, Lachesis, the University of Nottingham, East Midlands Business Angel (EMBA) and private investors. The Early Growth Fund investment is matched (and exceeded) by follow-on investments by the original investors. This second round will allow the company to reach the next stage of its development and is linked to the achievement of key milestones.
Dr Andrew Stevenson, Chief Executive of E-Synergy Limited, said: “We are delighted that we, alongside others, have made this first investment so soon into our first year of managing the East Midlands Early Growth Fund. Critical Pharmaceuticals has the potential to meet its commercial objectives. We hope to ensure that this Fund can assist other emerging East Midlands-based companies in a similar way.”
He continued: “We’ve now set-up a series of Fund Introductory Seminars for those companies who think they may be ready to receive investment, and have already met some 20 or so companies, which we are assessing against the fund’s criteria.”
Jeff Moore, emda’s Chief Executive, added: “It’s great news that the Fund has made its first investment so soon after being launched - congratulations to the E-Synergy team for their hard work and to the other investors also involved in the deal. Our ambition is for the East Midlands to become a flourishing region through a s