Paving the way for major breakthroughs

Jul 24 2007 by Steve Race, Evening Gazette

EARLY stage venture capital funding is helping North-east businesses to pioneer groundbreaking new technology.

Investments from fund management company NorthStar Equity Investors (NSEI) have paved the way for major breakthroughs in drug discovery by companies working in the region’s fast growing chemical and pharmaceutical sector.

NSEI manages the £10m Proof of Concept Fund (POC) and the £23m Co-Investment Fund (COIF) – both set up to help innovative technology businesses develop and grow.

Funded by the European Regional Development Fund (ERDF), the COIF helps fast growing companies secure investments of between £100,000 and £1m, supported by finance from investment partners.

Newcastle-based e-Therapeutics is one company to have benefited, developing a raft of potentially life saving drugs for MRSA, cancer, asthma and depression. The company, which has been spun out of Newcastle University, has received investment from NSEI to fund future clinical trials and the next phase of its drug discovery programme.

NSEI has also invested in Excelsyn, a company that provides a bespoke service to customers in the highly specialised pharmaceutical and biotechnology sectors, aiming to deliver dedicated chemistry, engineering and management consulting services. The investment has laid the foundation for further rapid expansion and will underpin Excelsyn’s strategy of becoming a leading provider within the pharmaceutical supply chain.

Proof of Concept funding has been designed to bolster innovative ideas at their earliest stages, providing investments of up to £90,000. It was set up with money from regional development agency One NorthEast and the European Regional Development Fund (ERDF).

More than 120 of the region’s most innovative companies have received investment, including Biotoolomics, in Consett, County Durham. Investment of £60,000 through the POC fund has provided the company with the finance it needs to continue its innovative work, which has been hailed as vital in developing biomolecule-based drugs.

With the help of Proof of Concept funding, Wilton-based Eurofarpoint is patenting its EMINT technique, which can make creams such as moisturisers in a much simpler way than usual. As well as being of interest to the cosmetics industry, Eurofarpoint’s innovations have strong potential in pharmaceuticals, food and paints.

Investments stretch from Teesside to Northumberland and are aimed at high growth, ambitious companies.

NSEI chief executive Marion Bernard said: “One thing all of our investments have in common is that they are destined for high growth. We’re looking for market-driven businesses led by committed entrepreneurs with innovative ideas and an ability to expand rapidly.

“We’re particularly keen to hear from ambitious entrepreneurs in the chemical and pharmaceutical sector as we look to develop our portfolio and strengthen the regional economy.”

For more information visit www.northstarei.com or contact NorthStar Equity Investors on 0191 211 2300.