A hi-tech university spin-off making chemical materials for the biotech industry has launched a new marketing drive after receiving £1 million in investment from a group of funders.
Warwick Effect Polymers raised a further £1 million of investment from new and existing venture capitalists and private investors to work on development and commercialisation of some of its proprietary technologies.
Together with income from its eight ongoing evaluation agreements with global pharmaceutical and biotechnology companies, the new funds will be used by WEP to progress further development of its technology platforms and to secure further agreements, licences to its patents and manufacturing contracts.
The major funder was Birmingham-based Catapult Venture Managers, who invested £600,000 alongside backing from Mercia Technology Seed Fund, Oxford Technology VCT, private investors and management.
WEP was a “spin-out” from the University of Warwick in 2001 and has already raised more than £3 million to date in grants and investments. Its proprietary technology, is based on the internationally recognised work of Professor David Haddleton in the field of functional polymer chemistry.
The company’s principal business activity uses its biopolymer technology, named PolyPEG, to secure evaluation, licence and manufacturing deals with major pharmaceutical and biotechnology companies on specific proteins/drugs under development.
The technology is a unique way of producing polymer chemicals – long strings of molucules – more easily. It can also make drugs last longer and be more effective.
WEP executive chairman Dr Richard Palmer, a former senior R&D manager in pharmaceutical and biotechnology companies and head of a leading UK Biotech company, joined the business in September 2007. He said: “WEP is very pleased to have secured this investment from Catapult, and the continued support from its existing investors in these difficult investment markets.
“This reflects the progress made by the company over the last year, which has secured eight evaluation agreements with leading companies, with more under negotiation. The funding will enable WEP to progress these, complete more, and secure licences and manufacturing contracts, leading to financial independence over the next two years.”
Catapult director Graham Mold added: “There are a number of technology platforms by which drug companies can enhance development and commercialisation of new biological drugs. WEP’s unique PolyPEG technology is attractive to global biotechnology and pharmaceutical companies because it is able to enhance the activity and dosing schedules of novel biological therapies under development, such as protein and oligonucleotide drugs, and has significant product advantages over existing technologies. WEP currently has a number of evaluation deals on a variety of drugs with highly reputable global players and the first licence is expected to be signed this year.”
Dr Mark Payton, the fund principal for the Mercia Technology Seed Fund, added: “WEP has a strong, broad proprietary position in an incredibly attractive market applicable to new products set to enter the clinic, as well as improving therapeutics already available to patients.”
