13 Aug 2015
Pharmaceuticals and Biotechnology
- Post Deal Mkt Cap: £64m
Zeus Capital advises Motif Bio on £22m fundraise
Based in London, Motif Bio has responded directly to the threat posed by antibiotic-resistant bacteria. The firm's lead product, iclaprim, is currently in clinical development. The drug is set to fill a major market void, as it is designed to fight serious and life-threatening hospital infections, responsible for at least 23,000 deaths in the US in 2013.
The firm had announced its intention to fundraise last month, but the deal was conditional upon securing a key designation by drug regulators in the United States that grants fast-track review and ten years of market exclusivity. Following the US Food & Drug Administration’s recognition of the group’s iclaprim antibiotic as a Qualified Infectious Diseases Product (QIDP), the business has now fulfilled the requirements to access the additional funding.
The money raised will be used by Motif Bio to complete preparations to enter phase III trials with iclaprim, and to provide working capital. It is expected that the commercialisation of iclaprim will occur in 2018, with a follow-on pipeline of preclinical antibiotics expected to follow as additional funding becomes available.
Zeus Capital acted as nominated advisor and joint broker to Motif Bio on the transaction. The firm has acted on a number of high profile deals, including the £100m institutional fundraise for niche pharmaceutical company Quantum Pharma, and more recently, the £1.2bn equity fundraise for Europe’s largest used vehicle retailer, BCA Marketplace. Since January 2014, the firm has raised £1.1bn for its corporate clients, in addition to raising 35 per cent of all corporate funds on AIM last year.
Graham Lumsden, chief executive of Motif Bio, said:“ Since our IPO, we have delivered on our promises, with agreement from the FDA with our Phase III plans and the granting of QIDP status. This fund-raising is key to progressing iclaprim rapidly through Phase III trials. We are confident that we remain on target.
We believe this is really transformative for Motif Bio. In a very short period of time, having listed on AIM at the beginning of April, we're delighted that we now have the support and confidence of these institutional investors, including Invesco, Aviva and Standard Life."
Phil Walker, Head of Healthcare, Corporate Finance at Zeus Capital, said: “We are delighted to have been able to help Motif Bio raise capital to commence its phase 3 trials of Iclaprim for the treatment of acute bacterial skin and skin structure infections (ABSSSI”).
Iclaprim’s recent designation by the US Food & Drug Administration (“FDA”) as a Qualified Infectious Diseases Product (“QIDP”) means that, if clinical development targets are met, iclaprim will have ten years of market exclusivity from the time of approval. Iclaprim can play an important role in combating the serious risks posed by antibiotic-resistant bacteria.
The deal serves to build on Zeus Capital’s already considerable pharmaceutical expertise. In the last 18 months, we have advised 4d pharma, Quantum Pharma, C4X Discovery, Brabant Pharma, and now Motif Bio, all market leaders and driving pharmaceutical innovation across the UK and worldwide. We very much look forward to building on our relationship with Motif Bio as it continues its upward trajectory.”