MTI, the leading UK technology venture capital investor, announces the sale of Myconostica Limited, the first investment in the UMIP Premier Fund (UPF), to Cambridge UK-based, Lab21 Limited, for an undisclosed sum.
Myconostica develops and markets PCR based in vitro diagnostic test kits for the rapid diagnosis of life-threatening fungal infections and stems from the pioneering work of Professor David Denning of the Faculty of Medicine, the University of Manchester.
The sale of Myconostica to Lab 21 repositions the company within a larger portfolio of specialist diagnostics and services under the Lab 21 umbrella, and brings synergies to both companies, with the hope that the eventual exit point for shareholders in Lab21, whether through trade sale or flotation, will yield superior returns for all.
Commenting on the deal, Dr. David Holbrook, General Partner and Head of Life Sciences at MTI, said: “This deal is proof that real value can be generated through first class academic intellectual property when it is expertly and actively managed by hands-on investors such as MTI, Amphion and others. We look forward to reaping further benefits to our shareholders of the incremental increase in the value of the remainder of our investment as the Myconostica product line is commercialised through Lab 21’s channels.”
Founder and Chief Medical Officer of Myconostica, Professor David Denning said: “Fungal infections are frequently under-diagnosed using current diagnostic methods and are much more common than realised. We have developed fast and sensitive molecular diagnostics for life threatening fungal infections such as aspergillosis and pneumocystis pneumonia, that will transform patient care for these infections. The global reach of Lab21’s operations will extend the availability of Myconostica’s products to many more clinicians.”
Speaking for The University of Manchester’s technology transfer company UMIP Limited, which established the spin-out, Clive Rowland, CEO of UMIP said: “UMIP worked closely with Professor Denning to optimise the intellectual property platform underpinning the company’s products and we are delighted that MTI and the other investors have crafted a business which has now become an exemplar of what UMIP and the UPF Fund can achieve.”