Guardians of life science businesses in Cambridge and the UK, supported by a prominent Cambridge biotech backer, have urged the Chancellor to overhaul Entrepreneurs’ Relief to persuade disillusioned and disadvantaged investors to stand by the sector and pour more lifeline growth capital into the sector rather than walking away.

One Nucleus in Cambridge is one of five UK biotech membership bodies to urge Phil Hammond to make conditions more attractive for investors – or risk throwing away the UK’s life science edge on the global stage.

Serial life science entrepreneur David Grainger, of RxCelerate, has applauded the initiative but urged the Chancellor to go further and totally overhaul the existing climate so UK biotechs are not starved of lifeline cash and wither on the vine.

Tony Jones, chief executive of One Nucleus, was a signatory alongside counterparts at OBN, BioNow, Medilink Midlands and MediWales – which together represent around 2,000 active life sciences companies – to an open letter to Hammond in regard to recently proposed changes to Entrepreneurs’ Relief, which they argued only scratched the surface of the real issue.

While welcoming changes to Entrepreneurs’ Relief, the group explains that they are unlikely to significantly help UK BioMedTech companies and demand more radical reform. 

Entrepreneurs’ Relief reduces the amount of Capital Gains Tax on a disposal of qualifying business assets on or after April 6, 2008, as long as the qualifying conditions are met throughout a one-year qualifying period either up to the date of disposal or the date the business ceased. 

Qualifying capital gains for each individual are subject to a lifetime limit. The general rate of CGT on gains is 20 per cent, while Entrepreneurs’ Relief applies the reduced rate of 10 per cent.

If the business is owned by a company in which the entrepreneur disposes of the shares or securities, then throughout the qualifying period of one year the company must be:-

• The entrepreneur’s personal company – either a ‘trading company’ or the holding company of a ‘trading group’
• The entrepreneur must be either an officer or employee of that company (or an officer or employee of one or more members of the trading group).
• A company is a personal company if the entrepreneur holds at least five per cent of the ordinary share capital and that holding gives the entrepreneur at least five per cent of the voting rights in the company.

It’s possible for shares acquired under the Enterprise Management Incentive (EMI) share option scheme to qualify for Entrepreneurs’ Relief where the personal company requirement isn’t met, although in the case of shares derived from EMI share options, there is in fact no minimum five per cent holding required.

The five per cent qualifying threshold limit impacts different sectors in different ways. In particular, BioTech and MedTech companies often have to raise significant amounts of capital – many tens of millions – simply to pass the regulatory hurdles during the pre-revenue product development phase. 

The risks for investors during these development phases are high. Consequently, there are few investors willing to support such companies, and entrepreneurs frequently find the value of their company does not increase at the rate that they had hoped (even though the valuations for the few companies that ultimately succeed can be exceptional). 

In addition, such BioTech or MedTech companies are often founded by more than one founder with founder shares being divided between them (with the university institutions often claiming a significant proportion of the founding shareholding). 

This means that entrepreneurs behind these companies invariably have to accept that their shareholding will drop to below five per cent (and loss of Entrepreneurs’ Relief). As Entrepreneurs’ shareholdings approach five per cent, this dramatically affects behaviour (the founders retain influential voices on company strategy) and they will (understandably) allow personal and financial considerations drive company financing strategy in a way which may not be in the best interests of the company or the national economy as a whole.

Under recently proposed changes, where an entrepreneur’s shareholding drops below five per cent as a result of a dilutative financing round, that entrepreneur can crystallise the gain up to that point with respect to the reduced rate of CGT (subject to the various other qualifying conditions).

However, for many BioTech and MedTech companies, the fall below five per cent will happen before any meaningful gain in valuation has materialised so the crystallisation of any gain is likely to have little effect in preserving the 10 per cent Entrepreneurs’ Relief rate.

The group recommends allowing entrepreneurs to retain their relief so long as they have held at least five per cent of the shares for at least one year during the period of their entire shareholding, and that such relief permanently applies to those shares acquired up to the point that they fall below five per cent.

So once they are below five per cent, any further shares acquired do not automatically benefit from Entrepreneurs’ Relief under this rule, but those held up to that point continue to qualify. This would be subject to all the other qualifying conditions.

The group argues that this change should magnify the impact of Entrepreneurs’ Relief in the BioTech and MedTech sectors, resulting in:-

• An increase in the number of entrepreneurs willing to take the personal risks in starting BioTech and MedTech companies
• Entrepreneurs being incentivised to remain involved with those companies for the longer term
• Entrepreneurs remaining supportive of future dilutative financing rounds which in turn will ensure that more UK companies attract the scale of patient capital required to build large and sustainable BioTech and MedTech businesses, whilst resisting the urge to sell out early
• The consequential growth in these companies which will further contribute to skilled employment in the life science sector and UK GVA.

The group concluded: “The UK has established a vibrant life sciences sector but more needs to be done to secure its longer-term viability, to capitalise on the excellence of the UK life science research base and to ensure the UK maintains its leading position in global healthcare.

“We believe that rapid adoption of the measures we have outlined above will reaffirm a commitment to the UK life sciences sector, send an important message to investors, and ultimately make a significant contribution to UK health and wealth creation.”

Serial life science entrepreneur David Grainger, chairman of RxCelerate – the Cambridge based outsourced drug discovery and development platform – applauded the initiative but urges the Chancellor to go further.

He told Business Weekly: “This is an excellent and long-overdue initiative. For years, life sciences entrepreneurs, particularly those engaged in drug discovery and development, have been at a disadvantage compared to other sectors thanks to vast amount of capital required for drug R & D and the very high risks involved.

“Many entrepreneurs behind successful companies I have been involved with have failed to benefit from this tax relief that is intended to encourage people to take risks with their careers to drive innovation. The changes being called for here would address many of these issues.

“But the Chancellor should consider going further – enhanced tax relief beyond the 10 per cent rate for drug developers is needed to further defray the huge risk of starting a new company in this area. 

“Beyond that, current rules often result in returns from share disposal on exit being deemed as income rather than capital gain, which cam result in an unintended increase in tax take from successful entrepreneurs. 

“Some relatively small adjustments here, which would have very minimal cost in terms of lost tax take, could provide a huge incentive to the sector and in my view achieve far more than the recommendations of the recent Patient Capital review.”

• PHOTOGRAPH SHOWS: David Grainger

Guardians of life science businesses in Cambridge and the UK, supported by a prominent Cambridge biotech backer, have urged the Chancellor to overhaul Entrepreneurs’ Relief to persuade disillusioned and disadvantaged investors to stand by the sector and pour more lifeline growth capital into the sector rather than walking away.

One Nucleus in Cambridge is one of five UK biotech membership bodies to urge Phil Hammond to make conditions more attractive for investors – or risk throwing away the UK’s life science edge on the global stage.

Serial life science entrepreneur David Grainger, of RxCelerate, has applauded the initiative but urged the Chancellor to go further and totally overhaul the existing climate so UK biotechs are not starved of lifeline cash and wither on the vine.

Tony Jones, chief executive of One Nucleus, was a signatory alongside counterparts at OBN, BioNow, Medilink Midlands and MediWales – which together represent around 2,000 active life sciences companies – to an open letter to Hammond in regard to recently proposed changes to Entrepreneurs’ Relief, which they argued only scratched the surface of the real issue.

While welcoming changes to Entrepreneurs’ Relief, the group explains that they are unlikely to significantly help UK BioMedTech companies and demand more radical reform. 

Entrepreneurs’ Relief reduces the amount of Capital Gains Tax on a disposal of qualifying business assets on or after April 6, 2008, as long as the qualifying conditions are met throughout a one-year qualifying period either up to the date of disposal or the date the business ceased. 

Qualifying capital gains for each individual are subject to a lifetime limit. The general rate of CGT on gains is 20 per cent, while Entrepreneurs’ Relief applies the reduced rate of 10 per cent.

If the business is owned by a company in which the entrepreneur disposes of the shares or securities, then throughout the qualifying period of one year the company must be:-

• The entrepreneur’s personal company – either a ‘trading company’ or the holding company of a ‘trading group’
• The entrepreneur must be either an officer or employee of that company (or an officer or employee of one or more members of the trading group).
• A company is a personal company if the entrepreneur holds at least five per cent of the ordinary share capital and that holding gives the entrepreneur at least five per cent of the voting rights in the company.

It’s possible for shares acquired under the Enterprise Management Incentive (EMI) share option scheme to qualify for Entrepreneurs’ Relief where the personal company requirement isn’t met, although in the case of shares derived from EMI share options, there is in fact no minimum five per cent holding required.

The five per cent qualifying threshold limit impacts different sectors in different ways. In particular, BioTech and MedTech companies often have to raise significant amounts of capital – many tens of millions – simply to pass the regulatory hurdles during the pre-revenue product development phase. 

The risks for investors during these development phases are high. Consequently, there are few investors willing to support such companies, and entrepreneurs frequently find the value of their company does not increase at the rate that they had hoped (even though the valuations for the few companies that ultimately succeed can be exceptional). 

In addition, such BioTech or MedTech companies are often founded by more than one founder with founder shares being divided between them (with the university institutions often claiming a significant proportion of the founding shareholding). 

This means that entrepreneurs behind these companies invariably have to accept that their shareholding will drop to below five per cent (and loss of Entrepreneurs’ Relief). As Entrepreneurs’ shareholdings approach five per cent, this dramatically affects behaviour (the founders retain influential voices on company strategy) and they will (understandably) allow personal and financial considerations drive company financing strategy in a way which may not be in the best interests of the company or the national economy as a whole.

Under recently proposed changes, where an entrepreneur’s shareholding drops below five per cent as a result of a dilutative financing round, that entrepreneur can crystallise the gain up to that point with respect to the reduced rate of CGT (subject to the various other qualifying conditions).

However, for many BioTech and MedTech companies, the fall below five per cent will happen before any meaningful gain in valuation has materialised so the crystallisation of any gain is likely to have little effect in preserving the 10 per cent Entrepreneurs’ Relief rate.

The group recommends allowing entrepreneurs to retain their relief so long as they have held at least five per cent of the shares for at least one year during the period of their entire shareholding, and that such relief permanently applies to those shares acquired up to the point that they fall below five per cent.

So once they are below five per cent, any further shares acquired do not automatically benefit from Entrepreneurs’ Relief under this rule, but those held up to that point continue to qualify. This would be subject to all the other qualifying conditions.

The group argues that this change should magnify the impact of Entrepreneurs’ Relief in the BioTech and MedTech sectors, resulting in:-

• An increase in the number of entrepreneurs willing to take the personal risks in starting BioTech and MedTech companies
• Entrepreneurs being incentivised to remain involved with those companies for the longer term
• Entrepreneurs remaining supportive of future dilutative financing rounds which in turn will ensure that more UK companies attract the scale of patient capital required to build large and sustainable BioTech and MedTech businesses, whilst resisting the urge to sell out early
• The consequential growth in these companies which will further contribute to skilled employment in the life science sector and UK GVA.

The group concluded: “The UK has established a vibrant life sciences sector but more needs to be done to secure its longer-term viability, to capitalise on the excellence of the UK life science research base and to ensure the UK maintains its leading position in global healthcare.

“We believe that rapid adoption of the measures we have outlined above will reaffirm a commitment to the UK life sciences sector, send an important message to investors, and ultimately make a significant contribution to UK health and wealth creation.”

Serial life science entrepreneur David Grainger, chairman of RxCelerate – the Cambridge based outsourced drug discovery and development platform – applauded the initiative but urges the Chancellor to go further.

He told Business Weekly: “This is an excellent and long-overdue initiative. For years, life sciences entrepreneurs, particularly those engaged in drug discovery and development, have been at a disadvantage compared to other sectors thanks to vast amount of capital required for drug R & D and the very high risks involved.

“Many entrepreneurs behind successful companies I have been involved with have failed to benefit from this tax relief that is intended to encourage people to take risks with their careers to drive innovation. The changes being called for here would address many of these issues.

“But the Chancellor should consider going further – enhanced tax relief beyond the 10 per cent rate for drug developers is needed to further defray the huge risk of starting a new company in this area. 

“Beyond that, current rules often result in returns from share disposal on exit being deemed as income rather than capital gain, which cam result in an unintended increase in tax take from successful entrepreneurs. 

“Some relatively small adjustments here, which would have very minimal cost in terms of lost tax take, could provide a huge incentive to the sector and in my view achieve far more than the recommendations of the recent Patient Capital review.”

• PHOTOGRAPH SHOWS: David Grainger

Guardians of life science businesses in Cambridge and the UK, supported by a prominent Cambridge biotech backer, have urged the Chancellor to overhaul Entrepreneurs’ Relief to persuade disillusioned and disadvantaged investors to stand by the sector and pour more lifeline growth capital into the sector rather than walking away.

One Nucleus in Cambridge is one of five UK biotech membership bodies to urge Phil Hammond to make conditions more attractive for investors – or risk throwing away the UK’s life science edge on the global stage.

Serial life science entrepreneur David Grainger, of RxCelerate, has applauded the initiative but urged the Chancellor to go further and totally overhaul the existing climate so UK biotechs are not starved of lifeline cash and wither on the vine.

Tony Jones, chief executive of One Nucleus, was a signatory alongside counterparts at OBN, BioNow, Medilink Midlands and MediWales – which together represent around 2,000 active life sciences companies – to an open letter to Hammond in regard to recently proposed changes to Entrepreneurs’ Relief, which they argued only scratched the surface of the real issue.

While welcoming changes to Entrepreneurs’ Relief, the group explains that they are unlikely to significantly help UK BioMedTech companies and demand more radical reform. 

Entrepreneurs’ Relief reduces the amount of Capital Gains Tax on a disposal of qualifying business assets on or after April 6, 2008, as long as the qualifying conditions are met throughout a one-year qualifying period either up to the date of disposal or the date the business ceased. 

Qualifying capital gains for each individual are subject to a lifetime limit. The general rate of CGT on gains is 20 per cent, while Entrepreneurs’ Relief applies the reduced rate of 10 per cent.

If the business is owned by a company in which the entrepreneur disposes of the shares or securities, then throughout the qualifying period of one year the company must be:-

• The entrepreneur’s personal company – either a ‘trading company’ or the holding company of a ‘trading group’
• The entrepreneur must be either an officer or employee of that company (or an officer or employee of one or more members of the trading group).
• A company is a personal company if the entrepreneur holds at least five per cent of the ordinary share capital and that holding gives the entrepreneur at least five per cent of the voting rights in the company.

It’s possible for shares acquired under the Enterprise Management Incentive (EMI) share option scheme to qualify for Entrepreneurs’ Relief where the personal company requirement isn’t met, although in the case of shares derived from EMI share options, there is in fact no minimum five per cent holding required.

The five per cent qualifying threshold limit impacts different sectors in different ways. In particular, BioTech and MedTech companies often have to raise significant amounts of capital – many tens of millions – simply to pass the regulatory hurdles during the pre-revenue product development phase. 

The risks for investors during these development phases are high. Consequently, there are few investors willing to support such companies, and entrepreneurs frequently find the value of their company does not increase at the rate that they had hoped (even though the valuations for the few companies that ultimately succeed can be exceptional). 

In addition, such BioTech or MedTech companies are often founded by more than one founder with founder shares being divided between them (with the university institutions often claiming a significant proportion of the founding shareholding). 

This means that entrepreneurs behind these companies invariably have to accept that their shareholding will drop to below five per cent (and loss of Entrepreneurs’ Relief). As Entrepreneurs’ shareholdings approach five per cent, this dramatically affects behaviour (the founders retain influential voices on company strategy) and they will (understandably) allow personal and financial considerations drive company financing strategy in a way which may not be in the best interests of the company or the national economy as a whole.

Under recently proposed changes, where an entrepreneur’s shareholding drops below five per cent as a result of a dilutative financing round, that entrepreneur can crystallise the gain up to that point with respect to the reduced rate of CGT (subject to the various other qualifying conditions).

However, for many BioTech and MedTech companies, the fall below five per cent will happen before any meaningful gain in valuation has materialised so the crystallisation of any gain is likely to have little effect in preserving the 10 per cent Entrepreneurs’ Relief rate.

The group recommends allowing entrepreneurs to retain their relief so long as they have held at least five per cent of the shares for at least one year during the period of their entire shareholding, and that such relief permanently applies to those shares acquired up to the point that they fall below five per cent.

So once they are below five per cent, any further shares acquired do not automatically benefit from Entrepreneurs’ Relief under this rule, but those held up to that point continue to qualify. This would be subject to all the other qualifying conditions.

The group argues that this change should magnify the impact of Entrepreneurs’ Relief in the BioTech and MedTech sectors, resulting in:-

• An increase in the number of entrepreneurs willing to take the personal risks in starting BioTech and MedTech companies
• Entrepreneurs being incentivised to remain involved with those companies for the longer term
• Entrepreneurs remaining supportive of future dilutative financing rounds which in turn will ensure that more UK companies attract the scale of patient capital required to build large and sustainable BioTech and MedTech businesses, whilst resisting the urge to sell out early
• The consequential growth in these companies which will further contribute to skilled employment in the life science sector and UK GVA.

The group concluded: “The UK has established a vibrant life sciences sector but more needs to be done to secure its longer-term viability, to capitalise on the excellence of the UK life science research base and to ensure the UK maintains its leading position in global healthcare.

“We believe that rapid adoption of the measures we have outlined above will reaffirm a commitment to the UK life sciences sector, send an important message to investors, and ultimately make a significant contribution to UK health and wealth creation.”

Serial life science entrepreneur David Grainger, chairman of RxCelerate – the Cambridge based outsourced drug discovery and development platform – applauded the initiative but urges the Chancellor to go further.

He told Business Weekly: “This is an excellent and long-overdue initiative. For years, life sciences entrepreneurs, particularly those engaged in drug discovery and development, have been at a disadvantage compared to other sectors thanks to vast amount of capital required for drug R & D and the very high risks involved.

“Many entrepreneurs behind successful companies I have been involved with have failed to benefit from this tax relief that is intended to encourage people to take risks with their careers to drive innovation. The changes being called for here would address many of these issues.

“But the Chancellor should consider going further – enhanced tax relief beyond the 10 per cent rate for drug developers is needed to further defray the huge risk of starting a new company in this area. 

“Beyond that, current rules often result in returns from share disposal on exit being deemed as income rather than capital gain, which cam result in an unintended increase in tax take from successful entrepreneurs. 

“Some relatively small adjustments here, which would have very minimal cost in terms of lost tax take, could provide a huge incentive to the sector and in my view achieve far more than the recommendations of the recent Patient Capital review.”

• PHOTOGRAPH SHOWS: David Grainger

Cambridge biotech startup NodThera, which is working on new treatments for chronic inflammation diseases, has raised $40 million growth capital in a completed Series A round. NodThera is based at Chesterford Research Park.

The Series A second closing was co-led by leading healthcare investors Sofinnova Partners and 5AM Ventures, with further participation from Epidarex Capital and F-Prime Capital Partners. 

NodThera was created and seed funded by life science investor, Epidarex Capital in 2016 based on earlier research conducted at Selvita, a Polish drug discovery company which remains a shareholder in NodThera. 

Henrijette Richter, PhD, managing partner of Sofinnova Partners and Scott Rocklage, PhD, founding partner of 5AM Ventures will both join the board with Richter serving as chair.

Alan Watt (pictured), chief scientific officer and acting CEO, said: “Selective NLRP3 inflammasome inhibition represents one of the most exciting and promising approaches to treating diseases caused by chronic inflammation.
 
“We believe this approach has the potential to transform the treatment of patients suffering from these diseases where there are limited or no treatment options available. 

“NodThera is committed to discovering and developing first-in-class molecules in our core disease areas and working with the best partners in this space to address other chronic inflammation driven therapeutic areas.

“Together with our highly experienced management team, a strong scientific advisory board and the support of our international blue-chip investors, we are fully equipped to achieve our future goals.”

NodThera is developing small molecule inhibitors of the NLRP3 inflammasome, a multi-protein complex which initiates an innate immune response in the body.

Its next generation approach could bring new treatment options to patients in areas where current standard of care is sub-optimal or non-existent across a wide range of therapeutic areas related to chronic inflammation. 

The NodThera strategy is to develop its leading drug candidate through to proof-of-concept in humans in an inflammatory disease and to bring forward further drug candidates specifically addressing high unmet medical needs such as neurodegenerative diseases and certain cancers.

In addition to its Chesterford Research Park base, NodThera has offices in  Seattle WA and Boston MA.

A new generation of wearable and mobile devices powered by advanced AI is to be developed at a new hothouse in Cambridge created by the university in alliance with US-headquartered Nokia Bell Labs.

The new Centre for Mobile, Wearable Systems and Augmented Intelligence is based in Cambridge’s world-leading Department of Computer Science and Technology. 

The centre will advance state-of-the-art mobile systems, security, new materials, and artificial intelligence to address one of the main human needs – the ability to communicate better with each other.

The collaboration pairs two innovation powerhouses. Nokia Bell Labs in Cambridge conducts research on novel sensors based on emerging materials, embedded and network intelligence, and computational social science. 

The university’s Department of Computer Science and Technology is expert in analysing mobile data and systems research in real world applications with quantifiable impact.

The research jointly conducted in the new centre will redefine the way people interact with the digital and physical world. 

Areas of focus include precise, predictive and personalised medicine, digital, physical, mental, and social well-being, and sensory human communication experiences beyond visual and audio. 

The centre will be directed by Cecilia Mascolo, Professor of Mobile Systems, and Alastair Beresford, Reader in Computer Security.

Professor Mascolo said: “The new centre provides support for high-quality, long-term research into mobile, wearable and augmented intelligence systems in Cambridge. It will also engage with other researchers across the UK and abroad. We will formally launch the new centre with a research symposium later in the year, with researchers drawn from across the UK and beyond.”

Dr Beresford added: “Mobile systems have transformed our lives and evolved dramatically over the last 20 years. However, there are many big changes to come and our research will ensure we have the right technical solutions as well as appropriate safeguards available.”

The centre will be used to establish a vibrant research community and support Nokia Bell Labs PhD Studentships as well as postdoctoral researchers over the next five years. It will also support the wider research community with a range of events, workshops and seminars. The official opening and first academic research symposium will take place in September.

Markus Hofmann, head of Applications, Platforms and Software Systems Research at Nokia Bell Labs said: “We are very excited to participate in the creation of this new centre at Cambridge. 

“We look forward to solving the key technical challenges as we move towards our shared goal – to provide people with enhanced awareness of their world, to help them better sense and interpret their digital and physical environment, to enable the long-distance exchange of people’s emotions and perceptions, to augment and improve the human experience in a digitally connected world.”

Nokia Bell Labs has been collaborating with some of the world’s preeminent researchers at the University of Cambridge for decades in the areas of Computer Science and Engineering to develop breakthrough nanomaterials and Artificial Intelligence technologies.

Nokia Bell Labs – Finnish-owned but with its HQ in New Jersey – has also expanded its physical presence in a state of the art research lab located right in the heart of the West Campus of Cambridge University on JJ Thomson Avenue.

At this new lab it has three research departments and a total of 25 researchers who will support the new centre hosting and supervising numerous PhD and postdoctoral researchers on a range of strategic projects involving novel sensors based on emerging materials, embedded and network intelligence, and computational social science.

• PHOTOGRAPH SHOWS: Professor Cecilia Mascolo

Investors gorged on the stock of Cambridge software business AVEVA as leading brokers issued ‘buy’ recommendations and flagged up growth potential for the company following the  issue of the first results since the merger with France-based Schneider Electric.

The results, allied to rallies in AVEVA’s key global markets, helped spur the buyer frenzy, hoisting the share price 306p – more than 12 per cent – to 2,838; it lifted the market cap past £4.52 billion ($6.06bn).

AVEVA issued pro forma figures to demonstrate how the business would have traded in its current shape for the whole full year to March 31; they show a 20 per cent increase in pre-tax profits to £162.8 million, once share-based payments and a number of one-off charges are stripped out. AVEVA injected a further shot of confidence by maintaining its 27p per share dividend.

It resulted in AVEVA opening trading as the biggest riser on the FTSE All-Share index as the pro forma results showed revenue up 8.6 per cent to £704.6m.

CEO Craig Hayman (pictured) said: “The last 12 months have been transformational for AVEVA and the years ahead will be even more exciting as a global leader in industrial software.

“There is an accelerating, secular trend toward the digitalisation of industry and the combined group is uniquely placed to capture this opportunity. 

“Our suite of proven solutions, deep sector expertise and global partner ecosystem, will help to drive innovation across the whole lifecycle of our customers’ assets: from design, through to operations and maintenance, maximising returns on investment to the capital intensive industries we serve. 

“The integration of the business has begun in earnest to drive top-line synergies. I am excited about the opportunities that lie ahead of us and will be focused on driving profitable growth.”

Cambridge life science business Vernalis has received several approaches to buy all or part of the company whose research function is anchored at Granta Park. 

All the suitors have signed non-disclosure agreements and multiple “detailed discussions” are now underway. 

CEO Ian Garland reiterated that the board wanted to finalise any proposed sale by September 30. The UK share price was substantially boosted by the announcement. 

Vernalis overstretched with an accelerated commercial push in the US and decided to explore selling the business as the optimum way forward. Its technology remains in demand and with a market cap north of £39 million the company remains an attractive acquisition target.

As part of the ongoing closure of its US operations Vernalis has terminated a key agreement with Tris Pharma, Inc. 

Vernalis will pay Tris $10m in cash. The Cambridge company is released from all future payment obligations under the development and commercialisation agreement including obligations to pay Tris milestones on development programmes. 

Vernalis has also transferred to Tris the rights to its Tuzistra® XR technology including the New Drug Application and Tris will retain the rights to CCP-07, CCP-08, CCP-05 and CCP-06 from the Vernalis stable.
Vernalis will be entitled to a high single digit royalty on sales of Tuzistra® XR for a 10-year period and on CCP-07 and CCP-08 for 10 years from product launch. 

Vernalis remains responsible for all Tuzistra® XR commercial activities up to the date of the NDA transfer. Vernalis also remains liable for any returns, rebates and co-pay assistance costs on stocks of Tuzistra® XR with wholesalers or pharmacies at the date of transfer.
 
Vernalis has deposited $3 million into an escrow until June 30, 2020 to fund these returns, rebates and co-pay assistance costs.

After the $10m payment to Tris and funding the escrow account, Vernalis projects a cash balance of £26m-£27m at June 30, 2018.

US giant Microsoft Studios has signed a letter of intent to acquire Cambridge UK games developer Ninja Theory for an undisclosed sum.

The move secures 100 Cambridge jobs and Ninja commercial director Dom Matthews says it will unleash a flurry of creativity that could put the Cambridge business years ahead of competitors.

The Ninja Theory acquisition is one of several by Microsoft in a sudden flurry.

There was a clear undertone in Ninja officials’remarks on its website that the future of the workforce as a whole could have been in serious doubt had it not been for Microsoft’s timely swoop.

Co-founder Tameem Antoniades described the acquisition as a new chapter in the company’s history. Ninja Theory has worked on Microsoft projects since the Xbox launch and confidence in its creative juices has clearly gathered force as the company continued to punch above its weight.

He confided: “About four years ago we very nearly closed our doors. Dozens if not hundreds of developers around us were closing their doors. 

“We were told there was no longer any place for developers like us – too big for Indy and too small to be truly AAA – and we had to tell our team we were facing annihilation. We had to find a new way forward.”

Ninja Theory split its teams, with one of 20 working with a $10 million budget to develop the highly acclaimed Hellblade. The project was so successful globally that it enabled the company to donate major sums to charity; it also racked up stacks of international awards including a haul of five Baftas in April.

Ninja Theory says that when Microsoft made its approach it was “totally unexpected. They asked our goals and ambitions and when we outlined our aim to make games more creative and take bigger chances we thought that would be the end of the conversation.

“Their response was to offer to protect our team, our culture and our independence and said they would put their marketing, technology and research resources fully behind us to help us achieve our goals.”

Ninja Theory directors visited all the Microsoft teams and emerged convinced that the acquisition would enable the business to back all its 100 employees and “jump years ahead. “We knew that we could really fly without the risk of falling down that had always held us back.”

• PHOTOGRAPH SHOWS: Tameem Antoniades

Potentially lethal bacteria, responsible for infecting tens of millions of people worldwide every year, could find their days are numbered through the efforts of scientist sleuths in Cambridge UK and California.

The genomes of more than 3,000 bacteria have been sequenced by teams at the Wellcome Sanger Institute in collaboration with Pacific Biosciences (PacBio). 

The bacteria have been collected by the National Collection of Type Cultures (NCTC) and include deadly strains of plague, dysentery and cholera.

By decoding the DNA, researchers will be able to better understand these diseases and how they become resistant to antibiotics. The publicly available genomic maps could also lead to the development of new diagnostic tests, vaccines or treatments.

Set up in 1920, the NCTC is the longest established collection of bacteria in the world. With more than 5,500 species of bacteria so far, the NCTC is also one of the world’s largest collections of clinically relevant bacteria. 

It is used extensively by researchers who are comparing historical and modern strains to advance global knowledge about the epidemiology, virulence, prevention and treatment of infectious diseases.

Antibiotic resistance is a significant problem globally and the collection includes some of the most important known drug-resistant bacteria. These include tuberculosis, one of the top ten causes of death worldwide, infecting 10.4 million and killing 1.7 million people in 2016 alone, and gonorrhoea, the sexually transmitted disease that infects 78 million people a year and is now becoming extremely difficult to treat. 

The NCTC also contains samples of methicillin-resistant Staphylococcus aureus (MRSA), which is resistant to multiple antibiotics and which can cause life-threatening infections in hospitals.

The genetic study of these strains will help researchers to understand the mechanisms of antibiotic resistance, and to look for any cracks in their armour to enable treatment.

All ‘type strains’ of bacteria in the collection, the first strains that describe the species and are used to classify them, were sequenced as part of this initiative. 

The genome sequences of these highly valuable strains are fundamental for developing ways to identify specific infections in people, including tests diagnosing bacterial infections in the field to rapidly identify the source of an outbreak and help contain infections.

Among the many historically important strains in the collection are 16 deposited by penicillin discoverer Alexander Fleming, including a sample taken from his own nose. 

Also notable is the first bacteria to be deposited in the NCTC: A strain of dysentery-causing Shigella flexneri that was isolated in 1915 from a soldier in the trenches of World War 1.

Globally renowned bug buster Dr Julian Parkhill (pictured) from the Wellcome Sanger Institute said: “Historical collections such at the NCTC are of enormous value in understanding current pathogens. 

“Knowing very accurately what bacteria looked like before and during the introduction of antibiotics and vaccines, and comparing them to current strains from the same collection, shows us how they have responded to these treatments. 

“This in turn helps us develop new antibiotics and vaccines. PacBio’s comprehensive DNA sequencing enables deep genomic analyses, and we are happy to be partnering with them for this important project.”

Going forward, all the bacterial species in the NCTC collection will be sequenced as they are collected. Researchers can order bacterial strains from the NCTC website.

Silicon Microgravity, a spin-out from both BP and the University of Cambridge, has raised $7 million from IP Group, Parkwalk, BP Ventures and Cambridge Enterprise.

SMG is a privately held company focused on developing and applying innovative technology primarily to improve surveillance, appraisal and production of oil and gas with additional application to CO2 storage, water management, mining and defence.

It says its technology has the potential to disrupt current practices and advance reservoir surveillance so that clients can achieve real efficiencies and cost savings while meeting their desired social, safety and environmental goals.

SMG is based on more than 10 years of research from the Nanoscience Centre at the University of Cambridge in collaboration with BP. It has developed what it describes as a unique high performance, ultra-sensitive, yet robust microelectromechanical system (MEMS). The MEMS technology consists of a 3-axis accelerometer with a projected resolution of approximately one billionth of the Earth’s gravity. 

SMG is also funded for and actively researching a related MEMS gyro technology with a potential application to inertial navigation. This $7m funding round will allow the company to commercialise its technology and grow rapidly.

Professor Ashwin Seshia, co-founder of Silicon Microgravity, said: “We have made very significant progress in developing the technology over the past year, meeting key technical milestones. 

“Our MEMS sensors are sensitive enough to detect seismic events across the globe and stable enough to track Earth tides. We continue to develop the technology underpinning these sensors, moving the roadmap towards even higher resolution and stability. 

“SMG has assembled an outstanding R & D and leadership team to launch the next phase of development, and is embarking on an ambitious field trial program in collaboration with BP and other partners to establish borehole microgravity as a viable technology for reservoir surveillance.”

Incoming CEO Jeremy (Jez) Lofts, added: “Our technology has a strong value proposition for our oil and gas customers looking to improve reservoir yields through enhanced subsurface monitoring and understanding. I am proud to join the team and lead the company at this exciting time.”

• PHOTOGRAPH SHOWS: Jeremy Lofts