IP Group PLC (LON:IPO) shares nudged higher on Thursday after its portfolio company Genomics signed a three-year collaboration agreement with US giant Vertex Pharmaceuticals Inc (NASDAQ:VRTX).
Vertex, which is listed on Nasdaq and has a market cap of US$47bn, has also taken part in Genomics’ latest £25mln funding round, alongside IP Group, Woodford Investment Management, Invesco Perpetual and others.
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The cash will be used to fund further expansion, build its database and “pursue opportunities”.
Genomics, a spin-out from the University of Oxford, has developed an “analysis engine” which uses genetics to better understand how a potential drug will work and how safe it will be.
It will work with Vertex to develop transformative medicines for people with serious diseases.
As well as covering Genomics’ costs related to the collaboration, Vertex will also make milestone and royalty payments for novel targets resulting from the collaboration that are taken through clinical development.
Shares of IP, which owns a 12.4% direct stake in Genomics worth £9mln, rose 2.3% to 131.6p.