Fusion IP sells Axordia in £1.68m deal

FUSION IP, the university intellectual property commercialisation company, has sold its majority share in Axordia to Intercytex Group in a £1.68m deal.

The Sheffield-based firm, which turns world class university research into business, now has a 4.78% shareholding in Intercytex worth £1.1m with the remainder of the deal for its 64.1% holding paid in cash.

Under the terms of the acquisition, Intercytex will issue seven million new ordinary shares of 1p each as consideration for the purchase of the entire issued share capital of Axordia

The consideration shares will be subject to a one year lock-up period followed by orderly market trading for a further year.

The AIM quoted regenerative medicine company specialises in the development of innovative products to restore skin and hair.

Sheffield University spin-out Axordia, which was founded in 2001 by Professor Peter Andrews and Professor Harry Moore, focuses on the development of stem cell therapies.

The deal gives Intercytex access to a world-leading group focused on the development of embryonic stem cell therapies and significantly broadens Intercytex’ capabilities in regenerative medicine.

Axordia in collaboration with The London Project to Cure Blindness is developing a novel stem cell therapy to treat age-related macular degeneration – the leading cause of blindness in the elderly.

The programme, which also involves the Moorfields Eye Hospital in London, is currently in late-stage preclinical development.

Additionally, Intercytex will gain exclusive rights to commercialise discoveries in the area of stem cell research derived from The Centre for Stem Cell Biology (CSCB) at Sheffield University.

The acquisition is not expected to increase Intercytex’s funding requirements in the short to medium term as Axordia already benefits from significant external grant and project funding.

David Baynes, chief executive of Fusion IP, said: “We are very pleased to announce this transaction which combines our Axordia operation with Intercytex and gives Axordia a better opportunity to realise its maximum potential.

“We recognise that Intercytex offers exciting prospects ahead in the stem cell medical arena and therefore believe that the structure of this deal increases the long-term potential for value creation for our shareholders.”

Nick Higgins, Intercytex’s chief executive, said that recent developments in the area of stem cell research had given the firm increased confidence in its ability to provide a highly effective source of therapies for use in future regenerative medicine products.

He added: “Axordia’s leading position in stem cell research, combined with our know-how in producing cell-based therapies to pharmaceutical industry standards, provides a strong platform from which to develop future cell-based therapies.

“The acquisition also provides us with a rich source of future potential pipeline candidates.”