Cambridge spin out DanioLabs bought by UK biotech for £15m
DanioLabs, a drug discovery company launched by researchers from the University of Cambridge, has been acquired by Oxford-based VASTox plc (VOX.L), a leading UK biotech for £15m.
Daniolabs, which has significant investment from the university and a research facility in Cambridge, is focused on developing products in the fields of neurology and ophthalmology.
The purchase will be through the issue of 11.7m new ordinary shares and cash of £159,000 to DanioLabs’ existing shareholders.
The acquisition is expected to strengthen and diversify VASTox's drug discovery and development pipeline, enhance its scientific expertise and boost its scientific infrastructure through the acquisition of DanioLabs' high-tech laboratory facilities in Cambridge.
The successful start-up company at Daniolabs was founded by Professor Bill Harris, Department of Physiology, Development and Neuroscience, Dr Paul Goldsmith, a Clinical Neurologist and former postdoc Herwig Baier in the Department of Anatomy and developed under guidance and investment of the Cambridge Enterprise team.
Bill Matthews, Fund Manager at the University Challenge Fund, part of Cambridge Enterprise said, "We made our first investment in Daniolabs in late 2002. At the time we were impressed by the promise of the technology and the quality of the academic founders of the business. The company had also managed to attract a strong group of business angels who brought a lot of experience to the start-up.
“The sale of Daniolabs to Vastox demonstrates how successful they have been in developing the business and in attracting talented board members and management."
Co-founder professor Bill Harris said, "DanioLabs allowed us to develop a number of strategic assets including screening strategies, specialised equipment, intellectual property, clinical trials and most importantly a great team of dedicated people.
“The merger of DanioLabs and VAStox is really exciting because it means that this type of drug discovery will now certainly become a major player in the Pharmaceutical Industry."
The CEO and CFO of DanioLabs will step down with immediate effect. VASTox will retain Daniolabs’ scientific research facility in Cambridge and all 37 remaining staff will take up new positions within the enlarged Group.
VASTox is a drug discovery firm that has a broad set of clinical, pre-clinical and discovery programmes across a range of serious disease areas with high unmet medical need. Its drug discovery programmes are supported by world leading technology platforms in zebrafish chemical genomics and carbohydrate chemistry.
VASTox also acquired Dextra Laboratories Ltd, a specialist carbohydrate chemistry service company, for £1.5m.
23rd March 2007
