Biofusion confident despite losses
BIOFUSION, the Sheffield company that turns academic research into business, announced increased losses today but said it looked forward to a busy period ahead as it continues to invest in world-class research.
The company – which specialises in commercialising technology developed in universities – announced a pre-tax loss of £1.9m in the six months to January 31 compared with a loss of £0.7m the year before.
It blamed the increase in losses on a rise in operating expenses primarily from the expansion of its operations in Cardiff.
In September the company said that it had signed a memorandum of understanding with Finance Wales, the provider of commercial funding to Welsh SMEs, detailing a co-investment strategy for investing in opportunities arising from Biofusion's exclusive IP pipeline agreement with Cardiff University.
Finance Wales and Biofusion will work closely together with a view to co-investing in suitable Cardiff University spin-out companies within the Biofusion portfolio. Finance Wales already manages funds of more than £100m and has invested £75m into SMEs in Wales.
Biofusion, which has stakes in a number of technology companies, said its cash levels stood at £8.6m and said it had invested £1.2m in spin-out companies for the six months up until January 31.
Chief executive David Baynes said: “I am delighted to report another set of results that demonstrate the progress we have made at Biofusion. Our portfolio of companies continues to grow as we exploit some of the world's most advanced and exciting university based research. We continue to focus on increasing the value of our portfolio based upon clear value enhancing milestones, in preparation for releasing value through appropriate exit routes when the companies and market conditions are right. The University technology transfer market continues to remain active and despite the current economic climate, we look forward to a
busy period ahead.”
During the past six months Biofusion has invested in a number of new spin-outs.
In February it announced it had invested in a new company set up to revolutionise the diagnosis of knee problems.
Demasq is the result of its partnership with Cardiff University and the work carried out by Professor Hechmi Toumi, a specialist at the muscle-bone-tendon unit of the School of Biosciences.
The company will specialise on developing a range of innovative bone and tissue imaging products.
It also made a second investment in fellow Sheffield University spin-out Asterion – bringing its total investment in the company to £550,000.
Asterion is developing a range of therapeutic proteins that will improve the current treatment options for patients with chronic diseases.
Biofusion currently has more than 20 companies in its portfolio.
