Fusion IP records first significant exit

RNS Number : 0793Y

IP Group PLC

24 February 2012

 



 

FOR RELEASE ON

24 FEBRUARY 2012

IP Group plc - Fusion IP records first significant exit through sale of Simcyp for $32m

IP Group plc (LSE: IPO) ("IP Group" or "the Company" or "the Group"), the developer of intellectual property based businesses, is pleased to note that Fusion IP plc ("Fusion") has recorded its first significant exit from its portfolio of companies.

Fusion, in which IP Group has a 26.0% undiluted beneficial interest, announced today that Certara LP, a leading provider of drug discovery and development software and scientific consulting services, has agreed to acquire Fusion's portfolio company, Simcyp Limited, for $32m.

The transaction, which is conditional only upon the completion of the drawdown of Certara's acquisition funding, is anticipated to complete on 29 February 2012. Fusion will receive approximately $6.4m in cash from the sale of its 20% shareholding in Simcyp, of which approximately 14% is being held in escrow for a period, as security for certain warranty and indemnity cover.

The full text of the Fusion announcement is below.

For more information, please contact:

IP Group plc	www.ipgroupplc.com
Alan Aubrey, Chief Executive Officer	[phone]
Liz Vaughan-Adams, Communications	[phone] / [phone] [e-mail]
FTI Consulting
Ben Atwell, John Dineen	[phone]

"FUSION IP PLC

("Fusion")

"Fusion portfolio company, Simcyp, agrees sale to Certara for $32M"

Fusion IP plc (AIM: FIP), the university IP commercialisation company that turns world class research into business, is pleased to announce that Certara LP ("Certara"), a leading provider of drug discovery and development software and scientific consulting services, has agreed to acquire Fusion's portfolio company, Simcyp Limited ("Simcyp"), for $32M.

Simcyp is a leading research-based company providing a modeling and simulation platform for predicting the fate of drugs in virtual populations, including pediatric populations. The transaction moves Simcyp into the Certara portfolio and further supports Certara's emphasis on supporting translational science initiatives. The transaction is conditional only upon the completion of the drawdown of Certara's acquisition funding. It is anticipated that this transaction will complete on 29 February 2012.

Fusion will receive approximately $6.4M in cash from the sale of its 20% shareholding in Simcyp, of which approximately 14% is being held in escrow for a period, as security for certain warranty and indemnity cover. The majority of the cash will be used to invest in a number of Fusion's existing portfolio companies and for the creation of new portfolio companies from its exclusive university partnerships, in line with its business model.

In the financial year ended July 2011, Simcyp made £1.9M post-tax profit.

David Baynes, CEO of Fusion said:

"We are delighted to announce our first significant exit from our growing portfolio of companies. Simcyp is a world-class software company and the 200 fold return we have made on our investment amply demonstrates the excellence of our university pipeline agreements and the value that can be extracted from these exclusive relationships."

Doug Liversidge CBE, Chairman of Fusion said:

"We would like to take this opportunity to thank the management and staff of Simcyp, who have built this excellent company since our first involvement in 2005. During this time, they increased profits and turnover in every year of our association with them and we wish them and the newly combined company every success for the future."

For further information please contact:

Fusion IP	[phone]
David Baynes, CEO Stuart Gall, Press Relations
Seymour Pierce	[phone]
Freddy Crossley, Corporate Finance Catherine Leftley, Corporate Finance David Banks, Corporate Broking

About Fusion IP

Fusion IP plc (Fusion) was established in 2002 to commercialise university-generated intellectual property.  It has long-term exclusive agreements with two of the UK's leading research-intensive universities, the University of Sheffield and Cardiff University, giving it exclusive access to all the IP generated by their research departments. These exclusive agreements enable Fusion to identify world class IP and turn it into a commercial opportunity, either through the creation of a start-up company or a license.

Fusion currently owns shareholdings is over 20 portfolio companies, including significant shareholdings in Seren, Simcyp, Magnomatics, Phase Focus, MedaPhor, Asalus and Diurnal

Fusion has a Co-Investment Agreement with IP Group plc ("IP Group"), in which IP Group has the right to acquire for cash, 20% of Fusion's equity in any new portfolio company. As Fusion normally owns 60% of any new portfolio company at start-up, IP Group's shareholding would normally equate to a 12% stake in the new portfolio company.

Fusion IP also has a Memorandum of Understanding with Finance Wales, the provider of commercial funding to Wales-based SMEs, which outlines a strategy of co-investment in opportunities arising from the Cardiff Agreement.

On 8 November 2011 Fusion announced that it had raised approximately GBP5 million through a fundraising with existing and new institutional investors. As a result of this IP Group holds an interest in approximately 26% of Fusion.

For more information visit www.fusionip.co.uk

About Simcyp

Simcyp provides platforms for modelling and simulation of drug absorption, distribution, metabolism and excretion (ADME) in virtual human populations and virtual laboratory animals. The company's flagship product the 'Simcyp Population-based ADME Simulator' is used by the world's top pharmaceutical companies (including Pfizer, Johnson & Johnson and AstraZeneca) and is recognised as the industry's most sophisticated platform for the simulation of drug-drug interactions. Simcyp recently released a rat simulator, 'Simcyp Rat', which can help reduce, refine and replace the use of laboratory animals in drug development.

Simcyp also runs educational workshops, provides consultancy services and supports academic and drug regulatory research through the provision of not-for-profit Simulator licenses to over sixty associate institutions.

For further information please visit www.simcyp.com

About Certara

Certara™ is dedicated to improving human health through a broad spectrum of software products and services, from molecular discovery through clinical development, with special focus on supporting translational approaches to drug development. Certara unites Tripos® (www.tripos.com) and Pharsight® Corporation (www.pharsight.com). Tripos provides innovative scientific software solutions and services enabling life science researchers to improve the efficiency of molecular discovery. Pharsight provides software and consulting services to improve productivity and decision-making in preclinical and clinical drug development.

About Pharsight

Pharsight®, a Certara™ company, is market-leading provider of software products and scientific consulting services to help pharmaceutical and biotechnology companies improve their drug development process, regulatory compliance and strategic decision-making. Established in 1995, the Pharsight helps customers reduce the time, cost and risk of drug development, as well as optimize the post-approval marketing and use of pharmaceutical products. Pharsight leverages expertise in its software tools and in the disciplines of pharmacology, drug and disease modeling, human genetics, biostatistics, strategic decision-making, and regulatory strategy. 

About Tripos

Tripos®, a Certara™ Company, is a global leader in innovative scientific software products and services enabling life science researchers to improve the efficiency of molecular discovery.  Established in 1979, Tripos helps a broad range of companies and research facilities accelerate the identification and optimization of new compounds that have the potential to become marketed drugs, foods, flavorings and fragrances."

Notes for editors

About IP Group

IP Group is a leading UK intellectual property ("IP") commercialisation company, developing technology innovations primarily from its research intensive partner universities. The Group offers more than traditional venture capital, providing its companies with access to business building expertise, networks, recruitment and business support.

The Company's portfolio comprises holdings in over 60 companies including Oxford Nanopore Technologies, the DNA sequencing development company, Revolymer, best known for its removable chewing gum and Xeros, which has received many accolades for its revolutionary clothes washing techniques with a much reduced requirement for water.

The portfolio includes early stage to mature businesses and has exposure to five main sectors - Energy & Renewables, Medical Equipment & Supplies, Pharma & Biotech, IT & Communications and Chemicals & Materials. To date, thirteen of the portfolio companies IP Group has backed have listed on the AIM market of the London Stock Exchange and one on PLUS Markets.

Founded in 2001, IP Group listed on AIM in October 2003 and moved to the Official List in June 2006. The Group now has long-term partnerships with twelve core universities including those under its commercialisation agreement with Fusion IP plc.

For more information, please visit our website at www.ipgroupplc.com.

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