Biotica Technology, a University spin-out company, yesterday (Tuesday 7 January 2003) announced the completion of a $5 million round of financing. The proceeds from this round of financing will be used to advance Biotica's proprietary discovery pipeline and will also allow the company to strengthen its research effort and expand its management team.

Biotica's proprietary technology is based on the pioneering research in the area of polyketide biosynthesis by Professor Peter Leadlay of the Department of Biochemistry and Jim Staunton of the Department of Chemistry, who jointly lead the University's polyketides research group.

Biotica is focused on applying its drug discovery technology to engineer novel polyketides with therapeutic potential. Polyketides are a diverse class of natural products and have widespread biological activity.

Currently marketed polyketides account for over $17B in sales and cover a broad range of therapeutic areas. Biotica's technology generates novel polyketide structures inaccessible by other means and provides a unique approach to key drug discovery targets.

Biotica has been collaborating with Pfizer in anti-bacterial research since 1997, and recently announced an expansion of this collaborative project. In addition to the Pfizer partnership, Biotica has collaborated with Dow AgroSciences.

The latest round of financing was led by Biotechnology Value Fund (San Francisco, CA) with co-investor Nordic Biotech (Copenhagen). Marc Schneidman and Florian Schönharting will join the Board of Biotica, representing BVF and Nordic Biotech respectively.

Commenting on the fund-raising, Dr Simon Turner, Chief Executive, said: "We are absolutely delighted to have attracted such high quality biotech investors. We look forward to working with them as we continue to build the company to exploit the unique and exciting discovery opportunities offered by our proprietary technology".

Dr David Secher, Director of Research Services for the University of Cambridge, stated: "Turning research into successful spin-out companies is an important role for universities in the 21st century. Biotica is a splendid example of what can be achieved and we wish them every future success in developing new healthcare products." The University is a shareholder in Biotica.

Marc Schneidman, Vice-President of BVF added: "We believe Biotica's technology for the engineered biosynthesis of polyketides is among the most advanced and promising technologies in the field of natural products today. It is rare to find an early stage opportunity with such leading edge technology, high quality science and top management already in place. We are excited to be a part of this world class team."

Image: Photodisc

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