Microbiotica signs collaboration worth up to $534m

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IP Group PLC

06 June 2018

 

OR RELEASE ON

06 June 2018

IP Group plc - Portfolio company Microbiotica enters into microbiome collaboration with Genentech worth up to $534m

IP Group plc (LSE: IPO) ("IP Group" or "the Group"), the developer of intellectual property-based businesses, is pleased to note that its portfolio company Microbiotica Limited ("Microbiotica" or "the Company"), has entered into a multi-year strategic collaboration to discover, develop and commercialise biomarkers, targets and medicines for inflammatory bowel disease (IBD) with Genentech, a member of the Roche Group, in a deal worth up to $534 million.

Microbiotica is a leading player in microbiome-based therapeutics spun out of the Wellcome Sanger Institute 18 months ago and in which IP Group holds an undiluted beneficial stake of 33.4%.

Under the terms of the agreement, Microbiotica will utilise its precision metagenomics microbiome platform to analyse patient samples from clinical trials of Genentech's investigational IBD medicines, in order to identify microbiome biomarker signatures of drug response, novel IBD drug targets and live bacterial therapeutic products. Microbiotica will receive an undisclosed upfront payment and is eligible to receive research, development and commercialisation milestone payments up to $534 million based on achievement of certain predetermined milestones. In addition, Microbiotica is eligible to receive royalties on sales of certain products resulting from the collaboration. Genentech also has an option to license assets that Microbiotica develops as a result of the research collaboration.

The full announcement follows.

For more information, please contact:

IP Group plc	www.ipgroupplc.com
Alan Aubrey, Chief Executive Officer Greg Smith, Chief Financial Officer Liz Vaughan-Adams, Communications	[phone] [phone]/[phone]
Charlotte Street Partners
Andrew Wilson	[phone]
Martha Walsh	[phone]

Notes for editors

About IP Group

IP Group is a leading intellectual property commercialisation company which focuses on evolving great ideas, mainly from its partner universities, into world-changing businesses. The Group has pioneered a unique approach to developing these ideas and the resulting businesses by providing access to business building expertise, capital (through its 100%-owned FCA-authorised subsidiaries IP Capital and Parkwalk Advisors), networks, recruitment and business support. IP Group has a strong track record of success and its portfolio comprises holdings in early-stage to mature businesses across life sciences and technology. IP Group is listed on the Main Market of the London Stock Exchange under the code IPO.

Group holdings in portfolio companies reflect the undiluted beneficial equity interest excluding debt, unless otherwise explicitly stated.

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

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Microbiotica Enters into Microbiome Collaboration with Genentech

·     Strategic collaboration for microbiome biomarker signatures and therapeutic discovery based on Genentech's inflammatory bowel disease pipeline

·     Utilises Microbiotica's leading gut microbiome Reference Genome Database and Culture Collection

·     Microbiotica to receive up to $534 million in upfront and milestone payments

Cambridge, UK, 6 June 2018 - Microbiotica, a leading player in microbiome-based therapeutics spun out of the Wellcome Sanger Institute, today announced that it has entered into a multi-year strategic collaboration with Genentech, a member of the Roche Group, to discover, develop and commercialise biomarkers, targets and medicines for inflammatory bowel disease (IBD).

Under the terms of the agreement, Microbiotica will utilise its precision metagenomics microbiome platform to analyse patient samples from clinical trials of Genentech's investigational IBD medicines, in order to identify microbiome biomarker signatures of drug response, novel IBD drug targets and live bacterial therapeutic products. Microbiotica will receive an undisclosed upfront payment and is eligible to receive research, development and commercialisation milestone payments up to $534 million based on achievement of certain predetermined milestones. In addition, Microbiotica is eligible to receive royalties on sales of certain products resulting from the collaboration. Genentech also has an option to license assets that Microbiotica develops as a result of the research collaboration.

Microbiotica was formed 18 months ago with funding from Cambridge Innovation Capital and IP Group to commercialise ground-breaking microbiome science at the Wellcome Trust Sanger Institute, from the laboratory of Dr Trevor Lawley, CSO of Microbiotica.

The Microbiotica platform comprises the world's leading microbiome Culture Collection and linked Reference Genome Database that enable unprecedented precision of gut bacterial identification at clinical trial scale. The Company is adding to this at a very rapid rate through its industrial culturing and sequencing pipeline, providing the best available representation of clinical trial samples for strain-level identification of bacteria. The complex datasets that arise from such studies are analysed using AI techniques to discern microbiome signatures linked to phenotype. The availability of the physical Culture Collection enables biological evaluation of bacteria in proprietary translational models including humanised microbiome mouse models.

Dr Mike Romanos, CEO of Microbiotica, said: "This collaboration brings together a world-class pipeline of investigational IBD medicines from Genentech with the world-class microbiome capability of Microbiotica. We are excited by the opportunity to work with Genentech scientists in order to bring precision metagenomics into the clinical arena for the first time, enabling us to develop biomarkers and medicines for the benefit of patients."

"This collaboration reflects Microbiotica's strategy of utilising its platform for medicines and biomarker discovery while simultaneously expanding platform capabilities. Whilst Genentech will retain rights to proprietary biomarkers, targets and medicines, the collaboration will enable Microbiotica to continue to rapidly expand its already leading Reference Genome Database and Culture Collection, further strengthening its value across all therapeutic areas." added Dr Romanos.

James Sabry, M.D., Ph.D., Senior Vice President and Global Head of Genentech Partnering, said: "We believe the microbiome represents a new paradigm in biomedicine, both for understanding drug response and as a novel therapeutic modality. We have chosen to collaborate with Microbiotica because of its high-quality science and look forward to working together to potentially bring new medicines to people suffering from IBD."

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Notes to Editors

About Microbiotica

Microbiotica was established in 2016 to develop and commercialise ground-breaking research into the role of the human microbiome in health and disease and its application to medicine conducted in the Host-Microbiotica Interactions Laboratory ("HMIL") at the Sanger Institute.  The Company was founded by Dr Mike Romanos, Dr Trevor Lawley and Professor Gordon Dougan, FRS. Microbiotica is based at the Wellcome Genome Campus in Cambridge, UK, with offices in the Biodata Innovation Centre and laboratories in the Sanger Institute. It has a strategic collaboration with Genentech, a member of the Roche Group, in the field of inflammatory bowel disease (IBD).

For more information, please visit www.microbiotica.com

About the Microbiome

Recognition of the importance of the microbiome, the body's trillions of resident bacteria, represents a paradigm-shift in our understanding of its impact on human health and disease. This creates major opportunities in the diagnosis and treatment of a wide range of disease including enteric infections, autoimmune disorders, metabolic disorders, cancer and neurological disease.

For further information please contact:

Microbiotica Rowena Gardner [e-mail] [phone] / [phone]

Instinctif Partners (for media enquiries): Sue Charles/Gemma Harris [e-mail] [phone]

 

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