Medtech secures £3.8m in new funding round

A medtech spinout from the University of Warwick has secured £3.8m in a new round of funding.

The bulk of the funding – £2.5m – in Medherant has been supplied by specialist technology funder, Mercia Technologies.

Medherant is developing an innovative transdermal drug delivery patch technology.

Henley-in-Arden-based Mercia’s investment is alongside both private investors and other current shareholders.

Mercia’s direct equity shareholding has now risen from 11.3% to 32.4%. This new funding will support Medherant as it moves into clinical development and the commercialisation of its ibuprofen TEPI Patch®, as well as initiating development of its second product, a lidocaine TEPI Patch®.

Medherant’s TEPI Patch® is a novel proprietary platform capable of delivering higher doses of drugs through the skin to act locally or systemically. Transdermal delivery has many advantages, including fewer side effects, improved patient compliance and the potential to deliver drugs that are unsuitable for oral administration.

Since Mercia’s first investment in June 2015 through its managed funds, Medherant has secured an exclusive licence agreement with Bostik, a leading adhesive specialist, to use its novel pressure sensitive adhesive material in the development of the company’s TEPI Patch®.

Nigel Davis, CEO of Medherant, said: “We are grateful to have the continued financial support of Mercia and pleased to be working closely with the team as we move into the next exciting phase of Medherant’s development. Our TEPI Patch® technology is generating global interest and we are now working with several leading pharmaceutical companies as we develop our own product pipeline.”

Mark Payton, Chief Executive Officer at Mercia, said: “Medherant’s highly versatile platform is compatible with a wide range of drugs, enabling a transdermal route to market for drugs not currently suitable for formulation with existing delivery technologies.

“The company’s first product, Ibuprofen TEPI Patch®, will be manufactured at AdhexPharma in France for clinical trials in early 2018.

“Led by Dr Nicola Broughton, Investment Director and Head of Universities at Mercia, we have been working with the founders since inception, initially through our managed funds and are now scaling the business with a further direct investment. This has increased our equity holding in what potentially may become a very valuable business.”

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