News

New "Penicillin" for the 21st Century

01 Apr 2010

Today MGB Biopharma Limited, a late preclinical stage biopharmaceutical company, has commenced operations in Glasgow, UK to develop and commercialise a new class of antibacterial product: DNA Minor Groove Binders.

The senior executives are highly experienced pharmaceutical and biotech experts with a well-proven track record and the company has received start up funding from a syndicate of business angel groups led by Archangel Informal Investments Ltd alongside Tri Capital Ltd, Barwell plc and the Scottish Enterprise's Scottish Co-Investment Fund.

The technology has been licenced from the University of Strathclyde an has so far demonstrated very significant activity against Gram positive bacteria, including MRSA and also against some Gram negative bacteria.

The technology involves a new class of DNA minor groove binders (MGB's), to be used as anti-bacterial drugs. These compounds have arisen from the work of a multidisciplinary team comprising medicinal chemists, molecular modellers and microbiologists.

The initial development of the technology was created entirely through Scottish-based funding, intially through the former Synergy Fund, owned by University of Strathclyde and the University of Glasgow, then through Scottish Enterprise's Proof of Concept Programme and from royalties from Leucovorin©, the cancer treatment produced from research at Strathclyde University in the 1980's. The funding for further development and commercialisation is being led by Scotland's largest angel group, Archangels.

Dr Miroslav Ravic, Chief Executive Officer of MGB Biopharma said, "the introduction of a new class of antibacterial is an all too rare event in medical science. We are particularly proud to be working with the DNA Minor Groove Binder Technology from the University of Strathclyde - I believe the last Scottish association with the discovery of a new antibacterial class was none other than that of Sir Alexander Fleming's discovery of penicillin 82 years ago. We are excited by the fact that MGB Biopharma has the potential to bring a new mechanism of action into the treatment of serious hospital and community acquired infections. This is a new area of high unmet need as a result of the rise of resistant bacteria which are not susceptable to many currently available antibacterial products".

Professor Colin Suckling, of Strathclyde's Department of Pure and Applied Chemistry, has been Principal Investigator in the DNA minor groove binder technology. He said, "This is technology which was initiated and developed in Scotland and which is now being funded to grow in Scotland - for worldwide benefit.

"Minor Groove Binders, which are found in DNA structures, have great potential to act as anti-infective agents to deal with infections which can have a serious, and even fatal, impact.  We look forward to the new company taking the technology further so that improved and safer treatments can be delivered to patients."

John Waddell, Chief Executive of Archangels, said; "This is the largest deal that Archangels has led in its 18 years of operation and one of the most complex.  By bringing together funding approaching £2million from partners across Scotland, we are backing the further development of this exciting product, which has major potential to cut deaths from infection."

Andrew Sloane, head of Scottish Co-Investment Fund for Scottish Enterprise, said, "Scottish Enterprise has a major role to play in helping to increase private sector investment into Scottish companies and this deal is a great example of how we can help to make this happen."

Robert Dick, TRI Cap chairman commented: "TRI Cap members are delighted once more to partner with Archangel to invest in this funding round for MGB Biopharma.  Around £200,000 has been secured from members in two tranches: we have all been impressed with the sense of purpose and clear vision of the management team at MGB."

Alec Mackie from Barwell plc said; "It has been a busy year for Barwell as it continues to invest in innovative Scottish companies. Offering the prospect of improved healthcare worldwide, MGB BioPharma is another exciting example."

About the Technology

DNA is the fundamental building block for an individual's entire genetic map. It is presented in the form of a double helix formed by base pairs attached to sugar-phosphate backbones which spiral around the outer surface of DNA

Between these backbones are two different sized grooves, designated the major and minor grooves.  These grooves are the site where regulatory proteins interact with DNA. They recognize specific regions of DNA with a high selectivity and produce their activity by modulation of biochemistry of cells at the fundamental levels of DNA replication or the transcription of key genes

DNA minor groove binders (MGBs) are a class of compounds that specifically bind to DNA Minor Grooves, demonstrating potential anti-bacterial/antifungal/antiviral and anticancer activity.

The activities of MGBs are determined by their ability to bind to specific sequences of DNA base pairs.

A New Class

MGB BioPharma's technology represents a new series of compounds that have markedly different profiles from the only significant pharmaceutical product belonging to the class of DNA Minor Groove Binder.  The latter product is used in cancer where an effect is essential for efficacy in that indication.  The distinctive chemistry of our compounds carried out by original research by the University of Strathclyde results in selectivity such that bacteria, rather than mammalian cells are targeted.

About Archangel Informal Investment

Archangel Informal Investment is Scotland's leading Business Angel Syndicate. Originally formed in 1992 and based in Edinburgh, the syndicate now comprises around 100 investor members and is investing circa £10m per year in early stage Scottish companies, including leverage from partners, the largest being Scottish Enterprise's Scottish Co-Investment Fund.

The current Archangel portfolio of companies includes 23 companies.  More information about the portfolio can be found at www.archangelsonline.com.

About The Scottish Co-investment Fund

The Scottish Co-investment Fund is a £72 million equity investment fund established by Scottish Enterprise, and partly funded by the European Regional Development Fund, to invest from £100,000 to £1 million in company finance deals of up to £2 million.

MGB Biopharma Ltd

For more information visit http://www.mgb-biopharma.com/

MGB Biopharma Ltd Management Team

Miroslav Ravic, MD, MSc, Spec Clin Pharm, PhD                             CEO/CSO/CMO/Principal Founder

A medical professional with thirty years of combined experience in clinical practice, medical science and the drug development with unique expertise in bridging the divide between the preclinical and clinical phases of the drug development process and moving early stage preclinical programmes into the clinical phase.

Gavin D. Clark, BSc, CLP                                                                             CBO/Co-Founder

A very experienced Pharma Business Development professional with 30 years in the industry. Gavin has worked in sales, marketing, marketing development, licensing and has led early stage companies in a senior commercial role. He is a Certified Licensing Professional as accredited by the Licensing Executives Society (LES) and has a prolific record of closed deals from both large and small company sides of the table in licensing, collaborations and M&A.

Raymond Spencer, ACA                                                                            CFO/Co-Founder

Over 25 years experience as a senior Financial officer in biotechnology companies; financial management of growth companies from early development through to revenue generation or exit. He  was instrumental in completing an IPO, several fund-raising rounds raising in excess of £100M, the acquisition of two private US biotech companies and in the negotiation of three licence deals with big pharma, as well as being responsible for financial reporting and control in Antisoma, an LSE listed company.

About TRI Capital

Tweed Renaissance Investors Capital (TRI Cap) is a business angel syndicate based in the Scottish Borders, with the intention of investing in growth businesses in the Borders and beyond.  Its founders include some of the Borders' leading business people who, between them, have many years' experience of building and investing in enterprises in the Borders and further afield.  The syndicate has invested in around 20 companies including Syntropharma, Lab901 and Novabiotics. Visit www.tricapital.co.uk for further information.

About Barwell

Barwell plc was established in Glasgow in 1993 as a privately funded "Corporate Angel" investor. In recent years the scale of Barwell's investments has increased as some of the portfolio of over 25 companies have reached maturity, allowing re-investment to take place.

About the University of Strathclyde

The University of Strathclyde is Scotland's third-largest university, with around 22,000 full- and part-time students and 3,500 staff.  Its vision is to take its place as a leading international technological university and its Faculty of Science has nearly 3,000 students and more than £20 million of external research grant income. The University offers extensive opportunities for multidisciplinary research, between departments and faculties.

The University of Strathclyde was recently rated as one of the UK's top 10 universities to work with by the business community. The University has formed more than 50 spin-out companies. More at http://www.strath.ac.uk/

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