Allied Minds PLC Allied Minds Raises $80m for ABLS Capital (2802W)
April 26 2016 - 2:00AM
UK Regulatory
TIDMALM
RNS Number : 2802W
Allied Minds PLC
26 April 2016
26 APRIL 2016
Allied Minds plc
Allied Minds announces funding commitments of up to $80 million
for the development of up to 10 drug discovery programmes
-- 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% of the lead optimisation phase of
up to ten new drug candidates that pass initial feasibility studies
funded by Allied Bristol Life Sciences LLC (ABLS). The remaining
20% of lead optimisation 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 optimisation
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.
Boston, MA (26 April 2016) - Allied Minds (LSE: ALM), an
innovative U.S. science and technology development and
commercialisation 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
optimisation programmes of promising drug development opportunities
that have successfully completed an initial candidate feasibility
programme.
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 programme 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% of the
funds for this critical next stage, and together with the 20% 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 optimisation phase is
successful, this model may provide an accelerated timeline to
monetisation 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 optimisation
phase and the identification of pre-clinical drug candidates for
potential sale to BMS.
- Ends-
For more information, please contact:
Allied Minds plc
------------------------------ -----------------------------
Chris Silva, Chief Executive
Officer +1 617 419 1800
------------------------------ -----------------------------
www.alliedminds.com
------------------------------ -----------------------------
Citigate Dewe Rogerson
------------------------------ -----------------------------
Patrick Donovan/Rob Newman +44 20 7638 9571
------------------------------ -----------------------------
alliedminds@citigatedr.co.uk
------------------------------ -----------------------------
Notes to Editors
About Allied Minds
Allied Minds (LSE: ALM) is an innovative U.S. science and
technology development and commercialisation 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.
This information is provided by RNS
The company news service from the London Stock Exchange
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