Intellectual property business developer IP Group said its portfolio company Iksuda Therapeutics had completed a $42m (£29m) financing round to fund human clinical trials of its lead cancer drug.
Newcastle-based Iksuda raised the cash from a group of new investors including South Korean drug developer Celltrion. The funds will be used to take lead drug, IKS03, into a phase one clinical trial and also go towards some of Iksuda’s other, earlier-stage cancer drugs.
Following completion, IP Group will have a 19.4% undiluted stake in Iksuda, expected to be worth £8.3m, representing a net unrealised fair value gain to the group of approximately £5.3m.
IP Group has also agreed to sell $5m (£3.5m) in shares as part of the transaction to secure Celltrion as a strategic partner to Iksuda and “long-term financial backing for the company’s pipeline”.
