RNS Release - Drug Development Licence

FUSION IP PLC

("Fusion IP" or "the Company")

 "Fusion announces significant drug development licence"

Fusion IP plc (AIM: FIP), the university IP commercialisation company that turns world class research into business, is pleased to announce that it has signed a license deal with a pharmaceutical company utilising IP out of the University of Sheffield (details withheld for commercial reasons), for the development of a known drug, in the area of certain endocrine diseases, a market worth over $500m per annum.

The agreement is royalty-based, with limited milestone payments. The drug is already being marketed for a different treatment and as such the probability of a successful launch is considered to be high.

The drug is currently at Phase II (efficacy) stage and is expected to make its first sales in 2015/16, with royalties to Fusion expected to peak at £1m per annum.

Dr Andrew Tingey, Head of Licensing at Fusion said:

"This is an excellent licence for Fusion and demonstrates the value that can be unlocked through licensing the non spin-out opportunities within the Fusion pipeline."

David Baynes, CEO of Fusion IP, commented:

"This is more excellent news for Fusion. At peak sales the revenue generated from this single agreement will cover most of Fusion's net annual overheads and is a great example of the tremendous value within our pipeline agreements with Sheffield and Cardiff."

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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 a combined R&D spend of over £185m a year. 

Fusion's first agreement was a ten-year exclusive arrangement with the University of Sheffield, giving it the right to commercialise (through the creation of spin-out companies and licensing) research, owned by the University, initially in the area of medical life sciences. This agreement was expanded in July 2008 to include all non-life science research-generated IP such as energy, engineering and electronics. Fusion has significant shareholdings in a portfolio of University of Sheffield spin-out companies including Simcyp, Magnomatics, Diurnal and Phase Focus.

In January 2007, Fusion completed a ten year exclusive agreement with Cardiff University, also giving it the right to commercialise (through the creation of spin-out companies) Cardiff University's research-generated IP.  Fusion has significant shareholdings in a portfolio of Cardiff University spin-out companies including Mesuro, Asalus and MedaPhor.

On 2 December 2009 Fusion announced that it had raised approximately £3.2 million through a fund raising and that as a result, IP Group held approximately 19.8% of Fusion. Fusion has also entered into a Co-Investment Agreement with 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 £5 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