Allied Minds Announces Funding Commitments of Up to $80 million for the Development of Up to 10 Drug Discovery Programs
April 26 2016 - 02:00AM
Business Wire
- Formation of new subsidiary, ABLS
Capital, LLC (ABLS Capital), to accept funding commitments of $80
million from investors including Woodford Investment Management and
Invesco Asset Management
- ABLS Capital will fund 80 percent of
the lead optimization phase of up to ten new drug candidates that
pass initial feasibility studies funded by Allied Bristol Life
Sciences LLC (ABLS). The remaining 20 percent of lead optimization
phase investment, or up to an additional $20 million, will be
funded by Bristol-Myers Squibb Company (BMS), pursuant to the terms
of the partnership formed in 2014 through ABLS.
- ABLS Capital will have the opportunity
to invest in early-stage subsidiary companies of ABLS with drug
candidates aimed at addressing diseases with large unmet medical
need and large market size, where successful completion of the lead
optimization phase is intended to result in a sale of such company
to BMS at pre-agreed terms. ABLS focuses on drug discovery in areas
of strategic interest to BMS.
Allied Minds (LSE: ALM), an innovative U.S. science and
technology development and commercialization company, today
announces that through its newly formed subsidiary, ABLS Capital,
it has secured investment commitments of $80 million to fund up to
ten potential lead optimization programs of promising drug
development opportunities that have successfully completed an
initial candidate feasibility program.
Pursuant to the terms of the ABLS partnership formed between
Allied Minds and BMS in 2014, BMS is committed to fund an
additional $20 million along with these commitments. Investors in
ABLS Capital include Woodford Investment Management (committing to
fund up to $40 million), Invesco Asset Management (committing to
fund up to $20 million), as well as Allied Minds and others.
ABLS is a drug discovery company focused on identifying and
developing biopharmaceutical innovations from leading
U.S. universities and research institutions that it believes
have significant therapeutic and commercial potential. ABLS focuses
on early-stage opportunities in key therapeutic areas, including
fibrosis, cardiovascular, oncology, immunology and genetically
defined diseases. ABLS forms and funds new subsidiary companies to
conduct an initial feasibility program on identified discoveries.
Upon completion of a successful feasibility program, ABLS arranges
for additional funds to be provided to such ABLS subsidiary for the
next stage of development. ABLS Capital will provide 80 percent of
the funds for this critical next stage, and together with the 20
percent of funds provided by BMS, will ensure that up to ten ABLS
subsidiaries will have the necessary capital to seek to identify
pre-clinical drug candidates.
Chris Silva, CEO of Allied Minds, said: “This is another
exciting step forward for achieving the goals of ABLS, which was
formed less than two years ago. Backed by supportive new investors
and together with our partner Bristol-Myers Squibb, we have secured
sufficient funding commitments for the pre-clinical development of
up to ten drug candidates. Each of these have the potential to
address areas of great unmet medical need across very sizeable
markets.”
ABLS Capital’s sole purpose is to co-invest with BMS and Allied
Minds. The objective is to generate high returns in drug discovery
with a significantly lower risk profile. The risk to Allied Minds
shareholders is reduced in two ways: early exit potential to
partner BMS at pre-agreed terms upon the successful identification
of pre-clinical drug candidates, and investment in opportunities of
strategic interest to BMS only after they have successfully
completed their respective initial feasibility phase.
For Allied Minds shareholders, the ABLS Capital vehicle provides
a funding model that further lowers risk exposure to the drug
discovery process due to the support of third party investor
commitments. In addition, where the lead optimization phase is
successful, this model may provide an accelerated timeline to
monetization on pre-agreed terms, with additional returns through
the potential for milestone and royalty payments.
To date, ABLS has launched three subsidiaries to license and
initiate development work on proprietary assets from Yale
University, Harvard University and NYU School of Medicine,
respectively. If any of these subsidiaries are successful in their
initial feasibility studies, then ABLS Capital financing
commitments may soon be put to work to fund the lead optimization
phase and the identification of pre-clinical drug candidates for
potential sale to BMS.
Notes to Editors
About Allied Minds
Allied Minds (LSE: ALM) is an innovative U.S. science and
technology development and commercialization company. Operating
since 2006, Allied Minds forms, funds, manages and builds products
and businesses based on innovative technologies developed at
leading U.S. universities and federal research institutions. Allied
Minds serves as a diversified holding company that supports its
businesses and product development with capital, central management
and shared services. More information about the Boston-based
company can be found at www.alliedminds.com.
Allied Minds Forward-Looking Statement
This press release contains statements that are or may be
forward-looking statements, including statements that relate to the
company’s future prospects, developments and strategies. The
forward-looking statements are based on current expectations and
are subject to known and unknown risks and uncertainties that could
cause actual results, performance and achievements to differ
materially from current expectations, including, but not limited
to, those risk and uncertainties described in the risk factors
included in the company’s regulatory filings. These forward-looking
statements are based on assumptions regarding the present and
future business strategies of the company and the environment in
which it will operate in the future. Each forward-looking statement
speaks only as at the date of this press release. Except as
required by law, regulatory requirement, the Listing Rules and the
Disclosure and Transparency Rules, neither the company nor any
other party intends to update or revise these forward-looking
statements, whether as a result of new information, future events
or otherwise.
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version on businesswire.com: http://www.businesswire.com/news/home/20160425006612/en/
fama PRLindsay Sollima,
617-986-5026alliedminds@famapr.com
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