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IP Group-backed Genomics raises £25m in a Series B

IP Group-backed Genomics raises £25m in a Series B

IP Group-backed Genomics raises £25m in a Series B

Genomics plc, a University of Oxford spin-out backed by UK-based healthcare/tech VC investor IP Group (LSE: IPO), has closed a £25.0m Series B financing round led by the major US biotech, Vertex Pharmaceuticals.  Woodford Investment Management – manager of the Woodford Patient Capital Trust (WPCT) – Invesco Perpetual, Oxford Sciences Innovation, Lansdowne Partners and Tanarra Capital also participated in the financing.

In addition to leading the financing, Vertex has separately signed a three year research collaboration with Genomics under which the two companies will conduct research and development related to target discovery and target validation in certain diseases – undisclosed, but likely to include cystic fibrosis – with the ability to suggest additional diseases. Vertex will provide funding and has milestone and royalty payments due on any drugs arising from novel targets identified as a result. Vertex initially started working with Genomics in 2016. Vertex, which is the world leader in cystic fibrosis,  is core holding for several of the leading sector specialist investment trusts including Biotech Growth Trust (BIOG, 9.1% of NAV), BB Biotech (BBB, 6.5%) and International Biotech Trust (IBT, 4.4% of NAV).

Genomics has developed an analysis engine that uses genetics to predict efficacy and safety of potential novel medicines. The analysis engine links human genetic variation at over 14 million positions in the human genome to changes in 7,000 molecular, cellular, and physiological measurements and disease outcomes for over 100 billion data points.  The Genomics database, the largest of its kind in the world, is based on studies of over 4.5 million participants and uses proprietary machine learning and statistical algorithms to predict the impact of therapeutic interventions.

Last year, Genomics entered into a similar collaborative research deal with Biogen, another major US biotech, to assess the genetic support for early-stage drug targets and to find novel targets for multiple sclerosis. Biogen is the world leader in drug therapies for MS and has the broadest portfolio in this segment in the industry.

IP Group committed £1.4m to the fundraising, which will result in its holding a 12.4% shareholding valued at £9.0m – thus giving Genomics at capitalisation of £72.5m. IP Group’s separate managed fund, IP Venture Fund II, invested £0.6m for a 5.3% holding (valued at £3.8m). As IP Group has a 33% limited partnership interest in IP Venture Fund II, its effective beneficial interest in Genomics will be 14.2%.

Genomics previously raised £10.3m in 2014 from IP Group, Invesco Perpetual, Lansdowne Partners, Woodford Investment Management and the Wylie Family Trust at a post money valuation of £25m.

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