King’s College spin-out Proximagen raises £50M

Funding

In one of the largest fundraisings in UK biotech for the past ten years, Proximagen Neuroscience plc, a specialist in neurodegenerative diseases, has raised £50 million to acquire and in-licence drug development programmes. Moreover, the company did not offer a discount, placing the new shares at the market price of £1.40 each.

A number of drug development programmes presenting acquisition and licensing opportunities have already been identified and are under negotiation. The company said the will be money will be spent over a two to three year period. At £57 million, Proximagen now has one of the largest cash balances of any UK biotech.

Kenneth Mulvany, Chief Executive of Proximagen, said, “We are very pleased with the support from our current and new investors for the fundraising. We intend to use the proceeds of this fundraising to build on our competency in diseases of the central nervous system by acquiring, developing and commercialising innovative drug candidate programmes in clinical stages of development.”

Mulvany added, “There is an opportunity to consolidate a select group of high quality assets into one strong biopharma company capable of developing drug candidates to commercialisation. I am pleased that so many blue-chip investors have backed our proposed business strategy and recognise this opportunity. “

The fundraising transforms Proximagen into one of the UK’s best capitalised biotechs, noted Mulvany. “By adopting a flexible investment strategy and working in alliance with companies via a number of different approaches, we intend to build a strong pipeline of assets. Proximagen looks forward to becoming a dominant CNS player in what is currently a highly fragmented sector.”

Proximagen was founded by its chief scientific officer, Peter Jenner of the Neurodegenerative Diseases Research Group at King’s College London in November 2003.