University spin-out in £6m fundraising

DIURNAL, a spin-out company from the University of Sheffield, is looking to raise up to £6m to help it bring a key product to market.

Diurnal, a portfolio company of intellectual property commercialisation firm IP Group, develops products for the treatment of hormone deficiency.

Its lead product Chronocort recently underwent a Phase 2 trial in the treatment of Congenital Adrenal Hyperplasia, a genetic condition causing swelling of the adrenal glands, and is due to enter pivotal Phase 3 studies in the first half of 2015.

IP Group has committed up to £4.1m of the £6m round which, if invested in full, would give the group an undiluted beneficial interest of 51.7%.

The group said the full £6m fundraising is subject to certain regulatory milestones being met and will enable Diurnal to complete the Phase 3 programme for Chronocort as well as advance other pipeline programmes.

Alan Aubrey, chief executive of IP Group, said: “This funding is intended to support Diurnal through its Phase 3 trial as it seeks to bring Chronocort to market. Diurnal has made impressive progress this year and is a great example both of the latent value in IP Group’s Biotech division and of IP Group’s commitment to supporting later-stage portfolio companies.”