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16/01/2013

£600,000 second-round investment and grant package announced by ADC Biotechnology (ADC Bio).

Continued development and commercialization of its new antibody drug conjugate (ADC) production technology will be accelerated by a £600,000 second-round investment and grant package announced by ADC Biotechnology (ADC Bio).

Based at OpTIC Technium in St. Asaph, North Wales, the business is significantly ahead of its 2012/13 business forecast. It recently agreed the first in an expected series of commercial collaborations with major players in the anti-cancer drug sector.

The second-round funding package includes a £400,000 equity and debt funding package from Finance Wales - and £200,000 from a consortium of previous and new private investors led by Acceleris Ltd.. Finance Wales and Acceleris were lead funders when ADC Bio became operational in December 2011.

The latest investment will also fund commissioning in the current quarter of the company’s new Technical Service Lab. – coming on stream to meet strong demand for consultancy and R&D services.

The company’s “Lock and Release” process technology speeds, simplifies and lowers the cost and environmental footprint of both developing and manufacturing the latest generation of anti-cancer drugs.

ADC Bio CEO Charlie Johnson says that the business is “very significantly ahead” of revenues forecast when its first round investment was announced, in December 2011.

He commented: “Growth is reflecting both an accelerating ADC market, and recognition by drug innovators of our consultancy and R&D capabilities for both development and scale-up phases. This is enabling us to partner with customers at an early stage in their product development”.

“Developing and manufacturing anti-cancer drugs can be complex and costly.  ADC Bio’s technology has the potential to improve drug production processes and offer significant cost and time savings. We’re pleased to invest a second round in the company as it is making significant progress in developing and commercializing its technology.”

Developing and manufacturing anti-cancer drugs can be complex and costly. ADC Bio’s technology has the potential to improve drug production processes and offer significant cost and time savings. We’re pleased to invest a second round in the company as it is making significant progress in developing and commercializing its technology.

Dr Melanie GowardDeputy Fund Manager in Finance Wales’ technology venture investments team

Norman Molyneux of Acceleris also commented:

“Against the background of rising demand, drug delivery improvements through innovative production technology point to lower treatment costs and thus greater patient access to leading edge cancer treatments. We’ve been delighted to again work with the ADC Bio team and Finance Wales to enable this latest investment.”

Collaboration:


In September 2012, ADC Bio announced the first in an expected series of technical and commercial collaborations with leading anti-cancer drug manufacturers.

The initial collaboration is with Swiss-based pharmaceutical process development and API manufacturers CARBOGEN AMCIS AG – an established global player in high-potency and anti-cancer drug production.

Access to ADC Bio’s “Lock and Release” technology will enable major ADC-based drug developers to benefit from its advantages for both complex drug development and scaled-up manufacturing services.

Market background….


ADCs are an important new class of anti-cancer therapies. Acting as carriers for chemotherapy drugs, they enter targeted cancer cells prior to ADC degradation to release the drug payload - with minimised impact on adjacent, healthy cells.

The first “second generation” ADC-based drug – ADCETRIS – received commercial launch approval in Summer 2011. More than 30 are in clinical trials, with another 100 in pre-clinical testing.

The ADC clinical pipeline currently includes treatments for breast, ovarian, gastric and lung cancers and melanoma. The combined annual sales and production markets for ADC drugs are projected to top US $8bn. by 2015/16.

Cancer is the second biggest killer in many developed countries and the anti-cancer drug segment is growing at roughly double the pace of the overall pharma market.