Allied Minds plc Trading Statement
February 09 2016 - 2:15AM
Business Wire
Allied Minds (LSE: ALM) (the "Company" or the "Group"), an
innovative U.S. science and technology development and
commercialisation company, today issued the following trading
statement for the financial year ended 31 December 2015.
Chris Silva, CEO of Allied Minds, commented:
“In 2015 Allied Minds made positive progress across the Group.
Our subsidiaries met, or exceeded, commercial milestones in nearly
all instances. We have embarked on exciting collaborations with
industry leaders such as Bristol-Myers Squibb, Intel, AMD and
Google; raised material third-party funding to accelerate the
development of two of our key subsidiaries; and seen the number of
commercialisation phase subsidiaries double to six.
Our U.S. academic and federal partner network is continuing to
flourish and has been highly productive over the year. We reviewed
more than 5,000 new technologies and engaged with over 90 new
research institutions, reflecting the growing recognition of the
strengths of Allied Minds as a commercialisation partner. We
continue to apply our rigorous selection and due diligence
processes to these new technologies and are confident in the
potential of our pipeline.
The range and depth of our achievements during 2015 has laid
strong foundations for Allied Minds to continue to generate further
value in 2016 and beyond.”
Investment highlights
During 2015, $102.8 million was invested into new and existing
portfolio companies, including:
- Allied Minds led fundraisings of $63.6
million, with $42.2 million coming from third-party investment, to
further accelerate the development of two of the Group’s existing
companies, SciFluor Life Sciences and Precision Biopsy;
- SciFluor Life Sciences, a drug
discovery company applying expertise in fluorine chemistry, raised
$30.0 million at a post money valuation of $130.7 million, up from
$37.1 million, to accelerate its two lead compounds - a treatment
for retinal diseases and a treatment for neurological diseases.
These compounds are expected to result in three Investigational New
Drug (IND) applications to the U.S. Federal Drug Administration
(FDA) in the first half of 2016 and subsequent commencement of
Phase I trials.
- Precision Biopsy, a company developing
early intervention technology that detects in real time suspicious
tissue during biopsy examinations, raised $33.6 million at a post
money valuation of $90.4 million, up from $19.0 million, to
accelerate the commercialisation of its ClariCore™ Biopsy System,
and develop its Focal Therapy programme. The funds support the
continuation of taking clinical core samples to optimize the tissue
classification system and the initiation of FDA clinical
trials.
- $39.2 million was invested by the Group
into new and other existing portfolio companies, including
investments in four new businesses: BridgeSat, ABLS I (Yale),
HawkEye 360 and ABLS II (Harvard).
- On 29 January 2016, Federated Wireless
raised $22.0 million at a post money valuation of $82.0 million, up
from $10.0 million previously. The raise will enable it to complete
its Spectrum Access System (SAS) and Environmental Sensor
Capability (ESC) certification process, conclude the development
and accelerate the commercialisation of its cloud-hosted CINQ
platform, and conduct field trials in the second half of 2016 with
technology partners. Allied Minds invested $5.0 million in this
fundraising, and third-party investment totalled $17.0
million.
Operational highlights
- During the year Allied Minds engaged
with over 90 new research institutions, bringing the total U.S.
universities and federal laboratories in the Allied Minds partner
network to 160, from 68 at the end of 2014.
- The investment team reviewed more than
5,000 new technologies developed by the partner network, and
following extensive due diligence on over 20 of the most promising,
formed and funded four new businesses, resulting in a total Group
portfolio of 23 subsidiary businesses at December 2015, and
executed options to license three additional technologies.
- The Group currently has 21 technologies
in early due diligence, two technologies in final due diligence,
and a number of opportunities in active negotiations.
- During 2015, several Allied Minds
businesses entered into collaborations with industry leaders
including Bristol-Myers Squibb, Intel, AMD and Google, validating
the quality of the companies’ platforms, people and
technologies.
- The accelerating pace of developing new
and existing companies during 2015 led to significant expansion in
the total workforce from approximately 234 to 359 employees and
consultants. The workforce increase was almost entirely
concentrated into the operating subsidiaries, where new hires
consisted of approximately 61% engineering and technical
development professionals, 27% leadership and management
professionals, and 12% sales, marketing and other business
development professionals.
Financial highlights
- Net cash and investments* of $194.8
million, (2014: $261.5 million)* includes cash in form of fixed
income securities
- Revenues of $3.2 million, (2014: $7.7
million) primarily reflecting revenue shortfall at RF Biocidics
(RFB), which following initial regulatory approval now requires
certification for each individual installation and is subsequently
delaying revenue.
- Group Subsidiary Ownership Adjusted
Value (GSOAV) at 31 December 2015, while still being finalised, is
expected to be comfortably ahead of the prior year due to the
strong growth of several key subsidiaries offset by the planned
closing of SiEnergy and the reduction in value of RFB.
Key subsidiary highlights
- Spin Transfer Technologies (STT), a
next-generation computer memory company:
- signed a co-development agreement with
a major memory company; and
- successfully developed its diagnostic
memory chip (DM1) to generate commercially relevant data for
evaluation by potential partners and customers.
- Optio Labs, a mobile security
technology company protecting employees’ mobile phones/tablets from
malware and control security:
- partnered with AMD and Sonim;
- launched several new products,
including OptioGrizzly, OptioCore 2.0; and OptioServices (in
January 2016).
- Federated Wireless, a spectrum sharing
company:
- received Federal Communications
Commission’s (FCC) authorisation to share government spectrum;
- partnered with Intel and launched CINQ
XP, a product that allows carriers to unlock 3.5 GHz band;
- initiated a pilot study with the U.S.
Department of Defence;
- working with Google, Intel and Qualcomm
on pioneering commercial initiatives; and
- post-year-end, successfully raised
$22.0 million in equity financing to conclude the development and
accelerate the commercialisation of its products and platform.
- RFB:
- as reported in our half yearly results,
sales of RFB’s state-of-the-art food safety equipment were lower
than expected due to delayed regulatory approval;
- initial regulatory validation was
completed by the Almond Board of California Technical Expert Review
Panel (TERP), whose decision confirmed third-party test results
that showed RFBs’ chemical-free process effectively eliminates
pathogens like Salmonella from almonds, making them safe to eat;
and
- RFB is now required to obtain
certification at each new installation of its system, delaying
roll-out. The company is actively working with regulators to
streamline the process and at the same time is implementing sales
and marketing focused initiatives.
- Allied Minds formed 4 new businesses
during the year:
- ABLS, a joint venture with
Bristol-Myers Squibb entered into a license agreement- with:
- Yale University (ABLS I) with respect
to research and intellectual property developed in the laboratory
of Dr. David Spiegel. The proprietary platform and associated lead
molecules known as Antibody-Recruiting Molecules (ARMs) provide a
novel approach for the treatment of cancer; and
- Harvard University (ABLS II) with
respect to research and intellectual property developed by
Professor Malcolm Whitman, and commenced a project to create novel
therapeutics for the treatment of fibrotic and autoimmune
diseases.
- BridgeSat, which is a collaboration
with The Aerospace Corporation, Draper Laboratory, Massachusetts
Institute of Technology Assistant Professor Dr. Kerri L. Cahoy and
the graduate student team in the Space, Telecommunications,
Astronomy, and Radiation (STAR) Laboratory, to develop an optical
connectivity system that aims to increase the speed, security and
efficiency of data transmissions from Low Earth Orbit (LEO)
satellites compared to traditional radio frequency solutions.
- HawkEye 360, a collaboration with Mr.
Chris DeMay, (who worked for the U.S. National Reconnaissance
Office, leading programs for satellite development), Dr. Charles
Clancy and Dr. Bob McGwier of Virginia Tech’s Hume Center for
National Security and Technology, (who developed the technology for
complex RF signal processing). This collaboration resulted in a
constellation of small satellites in LEO, capable of detecting
wireless signals, to track and monitor global transportation
networks, to assist with emergencies, including other data
analytics and reporting services.
Board and management
The Group has continued to evolve and strengthen its Board and
management with the following key appointments:
- Joseph Pignato, Chief Financial
Officer, (former CFO of Swipely, Charles River Ventures, Prism
Ventures and Lightbridge);
- Kevin Sharer, Independent Non-executive
Director, (former Chairman and CEO of Amgen); and
- Post year end - Jill Smith, Independent
Non-executive Director (former Chairman, CEO and President of
DigitalGlobe).
Summary and Outlook
Allied Minds made positive progress across the Group in 2015,
the range and depth of which has laid strong foundations to
generate further value in 2016 and beyond. Our new technology
pipeline will support the creation of new subsidiaries and we
expect a number in our current portfolio to progress into the
commercialisation phase during the year ahead.
The above information is presented on an unaudited basis. The
Group plans to issue its 2015 Annual Report and Results for the
year ended 31 December 2015, based on its audited statutory
accounts, on Monday, 25 April 2016.
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.
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version on businesswire.com: http://www.businesswire.com/news/home/20160208006449/en/
Allied Minds plcChris Silva, +1 617-419-1800Chief
Executive Officerwww.alliedminds.comorCitigate Dewe
RogersonPatrick Donovan/Rob Newman, +44 20 7638
9571alliedminds@citigatedr.co.uk
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