Oxford Investment Opportunity Network

The following five companies are seeking investment via the Network as a result of the 19 January 2010 OION investment meeting at the Said Business School in Oxford. The descriptions available summarise the investment proposal made by the company. The information is provided by the company and has not been vetted in any way by OION.

If you are interested in receiving further information on any of the companies then please contact us.

12 million people worldwide suffer from serious, slow-healing wounds such as pressure ulcers (bedsores) and diabetic foot ulcers, at an annual cost of $40bn. Best practice says that wound size should be measured at the start of treatment and regularly thereafter; up until now there has been no easy, accurate and repeatable way to do this.

Company A has developed an imaging system specifically to measure wounds. It includes a purpose-designed camera, software and a single-use, disposable target. The camera will be easy to use; a simple ‘point and click’ will acquire an image in less than a second. The data is downloaded onto a computer, where it is processed to give an interactive CAD-type model of the wound. Intuitive software allows the user to measure area, volume and more, to track wound progress and to help ensure that patients receive the best quality care. Trials have been successfully conducted and tangible customer demand has been established. We can show clear health economic and outcome benefits.

Company A’s CEO has over 20 years experience with the biggest companies in wound care, and extensive contacts among key customers and trade-sale buyers.

Company A is looking to raise £1m to take the system from its working prototype to a marketed product using an outsourced production model.

Company B is focused on building near term revenues through the in-licensing and acquisition of late stage clinical development and marketed products, prescribed by hospital based specialists.

Company B is raising up to £200,000 (£80,000 received). This is a precursor to closing an out-licensing agreement or a £3m round, which will be at a higher price. The company has engaged investors in this £3m round and either event will take the company into profitability and establish a cash generative, self-funded company as a base on which to grow:

- £3m round to commence sales of its first hospital product, which is for the treatment of the gastro-intestinal (GI) inflammatory condition pouchitis. Sales will be made under the European Named Patient Supply regulations and will commence approximately 6 months from the date of investment.
- Upon grant of approval for marketing under Orphan Drug designation, sales will grow to achieve peaks of £200/$300 million in the key markets.
- Extend use for treatment of ulcerative colitis and other GI conditions.
- Establish a sales force, expanding with further niche and orphan hospital products.
- Seek a trade exit, or to merge, or to float on a relevant stock market.

Honeywell predicts that by 2014, 75 percent of all European light vehicles will be boosted by turbo technology. This is driven by turbochargers achieving significant fuel savings and CO2 reductions through vehicles utilizing smaller engines without compromising on performance. Accordingly the motor industry is now seeking to bring the highest efficiency lowest cost turbo systems into its supply chain.

Company C has developed a patented highly efficient low cost Hybrid Turbocharger Technology delivering minimum fuel savings of 25% (surpassing competing turbo systems). A prototype has been well received by the wider industry and a 12-month testing program is to be undertaken in the mainstream automotive sector with a major vehicle manufacturer. A similar program is also agreed with JCB relating to off-highway vehicles.

Company C also has interest in using the technology in power generation and other applications.

Three major turbo manufacturers have already suggested potential timelines for trade purchase discussions linked to the current testing program. Company C accordingly expects to sell or licence the technology within the next 24 months. Cumulative licensing revenue forecast between £125mn - £300mn through to 2020 dependent on market share assumptions. This funding will further enhance Company C’s development programmes and capabilities.

The company currently sells gait measurement products to the equine markets. It has now leveraged its sensor system ‘know how’ and invested £1.5m into a unique patent pending product for human gait measurement. The way you walk tells much about your health and susceptibility to chronic health problems, risk of the elderly falling, the recovery from surgery or illness etc. With prevention being better and cheaper than cure, the health benefits of a low cost, simple, gait measurement tool are enormous. Accurate measurement of human gait can only be done in gait laboratories.

The products are targeted at orthopaedic clinicians, physiotherapists, fall clinics and clinical researchers. The equipment has been with the London Knee Clinic and Bath Institute of Medical Engineering for the last nine months where it has been used in pre and post monitoring of knee operations and falls prediction in the elderly.

UK market size is over £300m, from which the company expects to generate annual income of £5.4m and profits of £3m in five years. Once established in the UK, the worldwide markets are available as this is non-invasive measuring technology. Funding will be used to develop specific medical applications and establish a commercial sales team.

A syndicate of angel funding of ca £100k has expressed interest; matched funding may be available. Therefore top-up funding of ca £100k - £200k being sought.

Company E is a start up Company developing drugs to treat hospital acquired infections including MRSA.

Company E has acquired patented technology from Strathclyde University (“SU”) to develop and commercialise Product X. These are polyamides that bind to the minor groove of the DNA helix of infectious organisms, with potential applications as anti-bacterial, anti-fungal and anti-viral agents. SU have selected compounds that preferentially penetrate into and bind to the bacterial DNA and have demonstrated safety and efficacy in in-vitro and in animal models.

The application of the technology as anti-infectives is particularly attractive given the high, unmet medical need and the lack of new drugs to treat resistant infections. Current w/w market for hospital acquired MRSA is estimated at $2 billion.

Company E is looking to raise a total of £2.2m, of which £2.0m has been secured through Archangel Informal Investors and others. This will enable the Company to select a lead/backup compound(s) and prepare for entry into human clinical studies (IND) at which stage it is proposed to seek an exit through trade sale or out-licence within 2-3 years at over $20 million.