It was the third bullish update from a member of Fusion IP’s stable of companies this week.

Mesuro is a spin-off from Cardiff University and focused on commercialising RF test and measurement technologies coming out the university's Centre for High Frequency Engineering.The latest orders came from three customers, Fusion IP said. It has a 47% shareholding in Mesuro.

Richard Emsley, chief executive of Mesuro said the sales demonstrated the huge potential of its RF technology.

It enables device manufacturers to obtain the very highest performance from their designs, maximise device efficiency, reduce power consumption and decrease time to market, he added.

David Baynes, Fusion’s chief executive, added:  "Mesuro is in a transformational year and these sales should be a stepping stone for the company to secure significant sales in 2012. We look forward to working with Mesuro to converting its highly promising pipeline in the coming year."

On Monday, Fusion announced that 43% -owned Diurnal, a drug developer, had achieved a significant milestone in the progression of Chronocort, a replacement cortisol. 

Yesterday, Fusion said Seren Photonics had also signed its first collaboration agreement for its LED technology.

Shares rose 10.2p to 77.7p and have more than tripled in the last six months.

Under the terms of the agreement, the unnamed LED products manufacturer has been granted exclusive rights to its technology for certain lighting applications in India.

The deal also gives the partner the option of a licence for manufacture of product incorporating Seren's processes.

Seren’s technology helps to increase the amount of light created at the very heart of a white high brightness LED.

Dr Godfrey Ainsworth, Seren's Chairman, said: "We estimate that the first sales of manufactured product, incorporating our technology, will start as early as 2013 and lead to an increasing royalty stream, as our partner brings our process in to full production and their own manufacturing capacity increases.”

Dr Ainsworth added that the agreement was the first of many it hopes to sign and that it was for just one for just one application in one territory in the world.

“We are already in discussions with a number of our manufacturers around the world and expect to see further agreements made in a number of territories in 2012/13," he added.

Fusion’s chief executive David Baynes added: “This is another great example of the value of the technology in our pipeline. Seren clearly has the potential to become an extremely valuable portfolio company and we look forward to more deals in the future.”

Fusion IP has a 48 % shareholding in Seren.

Yesterday, Fusion announced that 43% -owned Diurnal, a drug developer, had achieved a significant milestone in the progression of Chronocort, a replacement cortisol.

Technology commercialisation company Fusion IP (LON:FIP) reported today that one of its businesses, Cardiff-based MedaPhor, has signed up its first US hospital to use its ScanTrainer ultrasound simulation system.

ScanTrainer is a virtual ‘real feel’ ultrasound training simulator that provides allows students to replicate the real scan experience. The technology enables trainees to feel what they see on the computer screen in order to develop the complicated mix of cognitive skills and eye-hand movement coordination required to operate an ultrasound machine, but without the need for an ultrasound machine or a patient.

The US hospital that has installed ScanTrainer is the University of Washington Medical Centre in Seattle – one of North America’s leading hospitals. The system was installed in its Institute for Simulation and Interprofessional Studies – a centre dedicated to the use of simulation technologies for training medical professionals.

“This is excellent news for MedaPhor,” said David Baynes, Fusion IP’s chief executive officer. “The US market for any medical related system is an important one and we are delighted that the University of Washington Medical Centre has chosen ScanTrainer for ISIS and that ISIS will be the first Institute in the US that will benefit from training all its practitioners with ScanTrainer’s revolutionary simulator-based OBGYN training modules and case studies.”

Meanwhile, Fusion IP also announced this morning that one of its other businesses, RF testing firm Mesuro, has appointed a non-executive chairman. Dr Godfrey Ainsworth has more than 20 years of experience in the semiconductor industry and currently serves as non-exec chairman at Alternative Investment Market-quoted compound semiconductor manufacturer IQE.

Shares in Fusion IP were up half a penny at 38 pence each this morning.

University commercialisation investor Fusion IP (LON:FIP) today announced that it has raised just over £5 million through a share placing.

It said it has sold new shares in the company to both new and existing investors.

The new funds will allow the company to continue investing in early stage technology companies, based on the research of Cardiff and Sheffield Universities. It will allow support the group’s medium term working capital. 

This means that Fusion can continue investing in its portfolio companies through subsequent financing rounds. 

“We are very pleased to announce this additional investment in the company from both current and new shareholders,” said chief executive David Baynes.

“We believe these funds, plus monies we expect to generate out of our growing portfolio, puts us in a strong position to maximise the return from both our portfolio and future companies."

Broker Seymour Pierce carried out the share placing on the company’s behalf. Fusion said that 17.8 million new shares will be issued at a price of 28p each.

Fusion is currently invested in more than 20 portfolio companies. These companies give the firm a well-balanced asset base of engineering, software and medical businesses, it said.

“The value of the portfolio is growing and the company anticipates it will be able to demonstrate this further in the current financial year, and capitalise on the progress made to date towards its first cash realisation,” the company said today.

While the share placing will support the business in the near term Fusion also emphasised that some realisation of its current investments would provide the group’s medium and long term funding.

Typically, Fusion would realise its investment by either a trade sales or by floating a portfolio company on a stock exchange.

The company today said that talks are currently underway with regards to one potential realisation.

The firm, which turns university-derived intellectual property into businesses, reported that EBITDA in the twelve months to July 31 2011 soared to £3 million from £0.4 million previously, and it made a pre-tax profit of £1 million, compared with a £1.6 million loss.

Chief executive David Baynes said: "We are pleased to announce another successful year for the group, one in which we have increased revenue, portfolio returns, and EBITDA. The value of our portfolio has continued to grow and we anticipate we will be able to demonstrate this further in the current financial year, and remain focused on achieving our first cash realisation. We look forward with confidence."

Fusion said its priority in the year ahead is to continue to focus on the growth of the portfolio and maximise value realisation, through trade sales or flotations, as appropriate.

The group anticipates it will need to raise additional funds during the year, and believes it can achieve this either through trade sale exits or dividends, however the directors continue to review all financing and resourcing options. As at July 31, Fusion had a cash balance of £2 million, compared with £4.6 million a year earlier.

Apart from its established portfolio companies, where six firns are in a trading phase of growth, of which three are trading profitably, Fusion IP has identified several potential rising stars. They are either fast growing, on the cusp of or already breaking through into profit, or with innovative technologies that are meeting development milestones and proving successful in the marketplace.

Among them is Cardiff-based i2L Research, a fast-growing product testing and development centre for the pest control industry and agrochemicals industry across Europe. The company, which has offices in Newcastle and Cardiff, is expanding its operations into Europe, through its new offices in the Czech Republic and Spain.

During the year, i2L increased its turnover by 40 percent to £1.1 million and its profits by 300 percent to £150,000.  Fusion has a 31 percent stake shareholding in i2L Research.

It also holds 38 percent in MedaPhor, also based in Cardiff, an ultrasound simulation business, specialising in the development and sale of advanced, virtual ultrasound training systems for the healthcare service.

The company's new ScanTrainer simulator is designed to teach all the core and advanced obstetrics and gynaecology ultrasound skills in a non-clinical environment. Launched in 2010, the award winning ScanTrainer system has been sold into 12 UK hospitals and the company has recently made its first sales into the all-important US and European market. With distributors covering an additional eight countries in the Far East, the company's sales pipeline is expected to grow in 2012.

Sheffield-based Absynth was founded in 2007 and  is developing vaccine and therapeutic antibody candidates for the prevention and treatment of bacterial infections. The Company's lead program focuses on infections caused by the bacterium Staphylococcus Aureus and the Methicillin-resistant form, MRSA.  Fusion has a 52 percent stake in Absynth.

A further ‘potential star’ is Mesuro, which focuses on providing performance improvements in the design and manufacture of RF (radio frequency) devices, microwave devices and amplifiers.

The Cardiff-based group started generating its first sales in 2011 and has raised an additional £440,000 during this calendar year to support its sales efforts. Fusion has a 47 percent share in Mesuro.

Technology commercialisation specialist Fusion IP (LON:FIP) said it expects to see a “significant uplift” in the valuation of its portfolio companies as it reported a trading update this morning.

The firm, which turns university-derived intellectual property into businesses, said that its Simcyp business continued to grow strongly during its 2010/2011 financial year. Fusion said Sheffield-based Simcyp, whose population-based simulator is designed to help streamline drug development, is expected to exceed forecasts for the seventh year in a row with a 25 per cent increase in turnover and a 35 per cent increase in profit before tax.

At the end of July, Phase Focus – Fusion’s microscopy and imaging company – raised £865,000 in equity investment to expand its operations, grow sales and conclude commercial deals with partners. As a result of this fundraising, Fusion’s stake in the business reduced to 49.1 per cent.

At the start of this month Fusion’s Cardiff-based drug development company, Diurnal, completed a £335,000 funding round that will help its lead product, Chronocort, to continue and complete its Phase I clinical trials. Chronocort is a hydrocortisone formulation for the treatment of congenital adrenal hyperplasia and adrenal insufficiency.

Magnomatics, the magnetic motor company, continues to grow strongly, according to Fusion. During the past year, the firm won prestigious new clients in the automotive, aerospace and defence sectors, while product development continued and turnover on a like-for-like basis is expected to grow by 70 per cent in 2011.

Seren, Fusion’s light-emitting diode business, is nearing the closing of its first commercial deals, while medical device company Asalus and radio frequency technology specialist Mesuro both made progress, with the latter company raising £440,000 to support its growing sales activity.

“I am delighted with the performance of our portfolio and that three more of our portfolio companies have been able to raise additional funding over the last month,” said David Baynes, Fusion’s chief executive officer. “The Phase Focus fundraising is particularly pleasing, as the funding achieved a significant uplift in value for Fusion, with the company on the verge of signing a number of significant commercial deals which this money will enable it to conclude. This brings a positive end to what has been another good year for the group.”

Fusion expects to deliver results for its 2011 financial year in October.

Atkinson had been involved with Fusion IP since its listing on the London Stock Exchange back in 2005. 

"Tony has been on the Board since the Company's listing in 2005, and has been a reliable source of advice and a good friend to all of us since that time,” Fusion IP chairman Doug Liversidge said.

“He will be greatly missed. Our thoughts at this time go to his family."

Atkinson had been involved in several small technology companies. Notably he founded a company named Kymed in 1990 which was later merged with Ofex- listed firm Enact Pharma in 2000. Enact was later merged again, while Atkinson was chief executive, into Protherics in 2003 (the group was eventual acquired by BTG).

Atkinson was also the chairman of two Protherics spin-outs, Morvus Technology and NanoMor Biomedical.

Fusion said it will consider the requirement for an independent non-executive director in due course.

Perlemax, the new portfolio company, is developing a novel fluidic oscillator which creates super efficient micro-sized bubbles of gas in a liquid. 

"This is another example of the world leading technology being generated at the University of Sheffield,” Fusion chief executive David Baynes said.

Fusion explains that while the oscillator is highly technical, it essentially works in a similar way to how a child blows bubbles with a toy.

However the applications for the new technology are far from child’s play. In fact, Fusion believes the technology could ultimately prove to be one of the holy grails of chemical engineering.

The oscillator can creates a super efficient, dense mist of micro bubbles without the need of any moving parts. 

These Micro-bubbles can dramatically increase the speed at which a gas can be transferred into a liquid, with no energy penalty. 

Fusion emphasised that the Perlemax technology has the potential to dramatically reduce the energy demands of essential chemical processes like water purification, wastewater treatment, biodiesel manufacture and carbon sequestration.  

According to Fusion, these are growing into multi-billion dollar markets that could immediately benefit from greater efficiency.

“The potential for large energy savings with our micro-bubble generation approach is huge, particularly in commodity chemicals production for gas dissolution and dissolved gas extraction, where energy savings could enhance profitability,” Perlemax inventor, and Sheffield University professor Will Zimmerman said. 

“There are many routes to becoming green, and reducing energy consumption with the same or better performance must be the most painless."

The technology could be either retrofitted into existing plants, or it could be manufactured for new plants.

Fusion notes that a number of pilot scale trials are already underway with commercial partners.

Initially Fusion has a 60 percent stake in Perlemax, but based on the company’s future investment profile, Fusion expects its longer term shareholding to be between 30 and 40 percent.

The funding round includes investments from existing stakeholders Fusion £220,000, Finance Wales £220,000 and IP Group £60,000.

Following the fundraising Fusion will have a 43% shareholding in Asalus.

Investors welcomed the news, sending shares in Fusion up 3.5%.

Cardiff-based Asalus is developing three innovative medical devices, Clearvision, Snugport and Surehold, which are designed to improve the safety and efficiency of laparoscopic surgery.

Clearvision is a novel smoke and steam clearance device. Fusion said that it represents a “paradigm shift in the way in which electrosurgical smoke is cleared from both minimal access and open surgical procedures.

Surehold is a multifunctional device for the atraumatic manipulation of tissues and organ and Snugport is an access port.

“We continue to believe that there is a gap in the market for a specialist incubator and developer of innovative medical devices, particularly in minimally invasive surgery market.

“Asalus' team allows it to accurately screen new ideas for potential value and then rapidly prototype and test new devices. Our first three products are testament to this,” said chief executive of Asalus Dominic Griffiths.

Asalus said it was delighted with the feedback is has received from end users.

Laparoscopic surgery is a modern surgical technique in which operations in the abdomen are performed through small incisions, as compared to the larger incisions needed in traditional surgical procedures.

The number of laparoscopic surgeries has grown rapidly over the recent years and has now reached over 2 million operations per year in the US alone.

Fusion invests in new companies and technology that are formed from university research. At present it has investments in 23 portfolio companies, originating from Cardiff University and the University of Sheffield.

In its first round of funding Seren raised £475,000.

Seren has a new processing technique that greatly increases the efficiency at which a HB LED converts an applied voltage into light. It significantly reduces heat generation under normal running conditions.

The technique was developed by the University of Sheffield’s Dr Tao Wang.

"Seren continues to make excellent progress and we are excited by the results to date,” Fusion chief executive David Baynes said.

“There is a huge potential market for their revolutionary technology and we remain confident that the light output, which is already double untreated devices, will be significantly increased as the process is optimised."

Primarily Seren’s HB LEDs will target the large and fast growing white light HB LED markets.

These are extensively used as back lighting for laptops, TVs, signs and displays, as well as domestic and architectural lighting.  

According to Seren, successful demonstrations of its technology have so far doubled the light output compared to untreated devices.

Consequently the LEDs can be much brighter or power consumption can be reduced.

The proceeds will be invested in key equipment and will allow thenbusiness to complete several pilot scale manufacturing cycles.

Once produced, the packaged HB LEDs will be used as demonstration products.

"We have made significant progress with the development of this technology in recent months,” Seren chairman Dr Godfrey Ainsworth said.

“Incorporation of our process technology in to packaged pilot HB LEDs will allow us to demonstrate our product to potential manufacturing partners and early adopters from the potential customer base,

“We are already engaged in discussions with these parties."

Fusion invests in new companies and technology that are formed from university research. At present it has investments in 23 portfolio companies, originating from Cardiff University and the University of Sheffield.

Seren was spun out from Sheffield University back in February 2010.

After participating in the investment round, Fusion IP now holds a 43.2% stake in Diurnal.

“Following today's fundraising, Chronocort is poised to complete its Phase I clinical trials early next year and progress development rapidly into patient trials,” general manager at Diurnal, Martin Whitaker, was cited as saying.

Chronocort is a delayed and sustained release therapy that delivers hydrocortisone in a manner that mimics the body's natural 24 hour hormone cycle, also called circadian rhythm.

The drug developed by Diurnal helps patients suffering from reduced cortisol and testosterone level.

This approach has the potential to help patients with deficiencies in steroid hormones and associated conditions by regulating metabolism, growth development and puberty, tissue function and in determining mood.

Chronocort has already received two related Orphan Drug designations from the European Medicines Agency, which affords ten years of market exclusivity after the grant of marketing authorisation in Europe.

“We are delighted to see Diurnal making such positive progress," said chief executive of Fusion IP David Baynes.

“The company now has an excellent investor base and the structured funding round will see the company's lead product in Phase 2 trails by 2011.”

Today’s announcement continued the positive newsflow that Fusion IP investors have enjoyed over the past couple of months.

Last month, Fusion IP reported a significantly improved financial performance with a massive increase in revenue to £4.4 million in the full year 2010, before announcing this month that another partner MedaPhor signed its first US distribution agreement for its ultrasound training simulator ScanTrainer.

The company’s strong revenue growth enabled a substantial improvement to the bottom line, pre-tax losses were cut to just £1.6 million compared to a £5 million loss last year.

Speaking with Proactive Investors, Fusion chief financial officer Tony Gardiner said that bottom-line profitability is a key aim for 2011.

The non-exclusive agreement with Florida based Rotherfield Technologies LLC will enable ScanTrainer to access the vast US market for ultrasound training.

ScanTrainer's unique ultrasound simulator uses SensAble Technologies' PHANTOM haptic device to provide a realistic, touch-enabled training experience.

The haptically-enabled computer training modules enable sonography trainees to develop the complex mix of cognitive skills and eye-hand movement coordination without the need for an ultrasound machine.

“ScanTrainer's unique ability to teach the core ultrasound examination skills, without the need for an ultrasound machine or a patient and with reduced involvement by a trainer,  speeds up the learning process and enables the trainer to supervise a larger number of trainees,"said chief executive of MedaPhor Stuart Gall.

“We believe the system has the potential to become the world's leading ultrasound training system.”

ScanTrainer's first system is the Transvaginal Simulator, which went on sale in the UK in June 2010.

A range of ScanTrainer systems, with associated pathologies and learning modules will be launched next year, including a Transabdominal system for teaching obstetric, general, and Accident & Emergency based medical examinations.

Fusion invests in new companies and technology that are formed from university research.

The university IP commercialisation specialist has investments in 23 portfolio companies.

The IP originates from Cardiff University and the University of Sheffield. Fusion has long-term deals with both institutions.

In October, Fusion IP reported a significantly improved financial performance with a massive increase in revenue to £4.4 million compared to £0.6 million for the full year 2009.

Gardiner, who has previously held senior financial positions with Eversheds LLP and KCOM Group, also presently serves as a director at Fusion IP Sheffield Limited, Fusion IP Cardiff Limited, Fusion IP One Limited, Fusion IP Two Limited, all part of the Fusion IP Group.

Gardiner’s past directorships within Fusion IP Group were at Magnomatics Limited and Mesuro Limited.

“Tony has made a significant contribution to the company over the last few years and his promotion to the main Board is much deserved recognition of this fact.

“I look forward to continuing to work with Tony,” said chief executive David Baynes.

Fusion IP, previously called Biofusion PLC, was established in 2002 to commercialise university-generated intellectual property. Fusion IP has signed long term agreements with the University of Sheffield and Cardiff University, giving a combined R&D spend attributable to Fusion IP of approximately £185 million a year.

Last month, Fusion’s Sheffield-based partner Absynth Biologics signed a licensing and collaboration agreement with MorphoSys, which will generate antibodies using its proprietary HuCAL PLATINUM antibody library which Absynth will test in relevant disease models.

Absynth will receive an upfront payment with further milestone payments and royalties.

The agreement is a part of MorphoSys’ new proprietary development program against novel infectious disease targets.

Collaboration with Absynth Biologics will provide MorphoSys with access to novel target molecules associated with Staphylococcus aureus infections including MRSA (methicillin-resistant Staphylococcus aureus).

MorphoSys, which will be solely responsible for the development and partnering of the resulting compounds, will generate antibodies using its proprietary HuCAL PLATINUM antibody library which Absynth will test in relevant disease models.

Absynth will receive an upfront payment with further milestone payments and royalties.

According to the Center for Disease Control and Prevention, 1.7 million hospital-acquired or nosocomial infections occur annually in the US alone, resulting in 99,000 deaths each year.

“This collaboration brings together Absynth's novel proprietary targets and expertise in S. aureus including MRSA and MorphoSys's expertise in the generation of antibody drugs.  We see these new targets as a very promising basis of antibody therapy for an increasingly serious medical problem," said Chief Executive of MorphoSys AG Simon Moroney.

“The targets identified by Absynth represent a unique opportunity to generate value rather quickly and create out-licensing opportunities much earlier than in the areas of cancer and inflammation."

Absynth has filed patent applications on all targets involved in the collaboration.

The financial terms of the deal were not disclosed.

Absynth is focused on the discovery and development of products for the prevention and treatment of bacterial infections. The company was founded in 2006 and based on discoveries from the University of Sheffield laboratories.

Fusion IP plc, previously called Biofusion plc, was established in 2002 to commercialise university-generated intellectual property. Fusion IP has signed long term agreements with the University of Sheffield and Cardiff University, giving a combined R&D spend attributable to Fusion IP of approximately £185 million a year.