Locate Bio acquires complementary late stage orthobiologics assets, accelerating ambition of building a world leading, diversified orthobiologics company

A significant step in its strategy of creating a differentiated, portfolio of best-in-class technologies that address the clear unmet needs of the surgeon

Locate Bio, an orthobiologics focused regenerative medicine company, today announced the in-licencing of multiple late stage orthobiologics assets from RCSI University of Medicine and Health Sciences.

The technologies developed by the RCSI Tissue Engineering Research Group have extensive pre-clinical and human data demonstrating their effectiveness in the treatment of both hard and soft tissues.  The RCSI licensing deal includes best in class, proprietary, natural collagen-based delivery technologies,  which have been developed into products for the regeneration of bone, the treatment of infection and regeneration of cartilage tissues.

Locate Bio’s ambition is to build a world leading, diversified orthobiologics company with a suite of best-in-class technologies that address the performance limitations of existing products and enable orthopaedic surgeons to improve the lives of people suffering from debilitating conditions. The bone grafting market is ripe for disruption as surgeons are forced to compromise between fusion rates, side effects, convenience and affordability. Locate Bio’s proprietary, regenerative medicine technology pipeline is delivering exciting orthobiologics products.

The in-licencing of the assets from RCSI provides additional depth and breadth to its current orthobiologics portfolio and accelerates its route to market. The company is looking for additional, complementary acquisition or in-licencing opportunities that would further broaden the portfolio to provide surgeons with a choice of best-in-class technologies and products that address the current challenges of existing products and meet the specific patient driven clinical need.

Locate Bio is currently seeking to establish a corporate presence in Ireland to further exploit these and future orthobiologic opportunities.

RCSI University of Medicine and Health Sciences is a world-leading international, independent university exclusively focused on education and research to drive improvements in human health worldwide. Established in 1784, to set and support professional standards for surgical training and practice in Ireland, today RCSI maintains a singular focus on health, with a clinically-led, patient-centred approch at the core of its research, education and training.

John von Benecke, CEO of Locate, said:

“I am very excited by the addition of these high-quality, complementary, late stage products to our portfolio. This is an important step in our drive towards building a world leading orthobiologics business, with our platforms now covering several key areas across the waterfront of clinical use. We continue to make excellent progress with our lead product for spinal fusion and I look forward bringing these new assets through the regulatory approval process in the near future.”

Dr Ian Wilding, Chairman of Locate said:

“The in-licensing of these late stage orthobiologics assets accelerates the Company’s ambitions and is another step in our strategy towards creating a differentiated, complementary portfolio of high value, innovative products, with strong IP and a well-defined path to market.”

Peter Dines, Chief Operating Officer of Mercia, said:

“We are delighted by the significant progress that Locate is making, both with their lead product, which has the potential to disrupt a $3bn* market, and with significantly rounding out of their value proposition with the addition of these assets.”

Professor Fergal O’Brien, Head of the RCSI Tissue Engineering Research Group and Director of Research and Innovation at RCSI, added:

“We are very pleased to be partnering with Locate Bio in this licensing deal. It is a clear validation of the excellent work being done within RCSI that we can attract businesses like Locate Bio to take these  products developed in our Tissue Engineering Research Group and AMBER, the SFI Centre for Advanced Materials and Bioengineering Research,  into international markets.  The opportunity to translate next generation medical technologies from our research labs to the clinic in partnership with Locate Bio is  perfectly aligned with RCSI’s mission. This partnership will unlock the potential of our technologies to improve treatments and quality of life for patients with orthopaedic conditions.”

* DRG Medtech 360 Bone Graft Substitutes 2019

 

About RCSI University of Medicine and Health Sciences

Ranked number one globally for Good Health and Well-being in the Times Higher Education (THE) University Impact Rankings 2020, RCSI University of Medicine and Health Sciences is an international not-for-profit university, with its headquarters in Dublin.

RCSI is exclusively focused on education and research to drive improvements in human health worldwide. It is among the top 250 universities worldwide in the THE World University Rankings (2021) and is ranked second among the universities in Ireland. Its research is ranked first in Ireland for citations. RCSI has been awarded Athena SWAN Bronze accreditation for positive gender practice in higher education.

Visit the RCSI MyHealth Expert Directory to find the details of our experts across a range of healthcare issues and concerns. In support of the UN Sustainable Development Goals to promote health and wellbeing, these academics, clinicians and researchers are willing to engage with the media in their area of expertise so they can empower people with information that leads them to better health.

 

For further information:

Locate Bio Limited

John von Benecke, CEO

+44 (0)115 784 0041

jvonbenecke@locatebio.com

Media enquiries: FTI Consulting 

Stephanie Cuthbert, Ciara Martin

Stephanie.cuthbert@fticonsulting.com

+44 (0) 203 727 1000

  

Locate Bio raises £2.25m for new spinal treatments

Locate Bio raises £2.25m for new spinal treatments

Locate Bio, who are developing new treatments for patients with serious spinal conditions, has completed a £2.25m funding round led by Mercia Asset Management to help to continue its ground-breaking research and bring its first products to market.

Locate Bio has secured the investment from Mercia’s own balance sheet, its EIS fund and the MEIF Proof of Concept & Early Stage Fund, which is managed by Mercia and part of the Midlands Engine Investment Fund, and the Future Fund.  Together with earlier funding rounds from Mercia and MEIF, it brings the total raised by the company to over £8m.

Locate Bio’s first product, which is at the pre-clinical development stage, will help patients who require spinal fusion surgery, where bones are permanently joined together to overcome low back pain. It uses a type of bone protein to remove the need for a bone graft. Its second therapy will be for the biological renewal of the intervertebral discs and will help those suffering from degenerative disc disease, a painful condition affecting 33 million people in the US and EU.

Locate Bio is a spin-out from the University of Nottingham and based on the research of Professor Kevin Shakesheff, a world-leading expert in regenerative medicine. The company, which initially started out as a contract research organisation, first received investment from Mercia in 2018.

John von Benecke, CEO of Locate, said:

“I am delighted by the continued support of our lead investor. This investment will allow us to maintain the excellent progress with our lead product and further the development of a pipeline of synergistic products.”

Dr Ian Wilding, Chairman of Locate said:

“This investment comes at an important time for the Company as it enters an exciting phase. Despite the uncertainty and disruption that COVID-19 has brought to so many industries, the Locate team have relentlessly executed against its aggressive timelines and the additional funding announced today is a welcome validation of the progress that has been made.”

Peter Dines, Chief Operating Officer of Mercia, said:

“We are very pleased to continue to support John and the team at Locate. Their lead product has the potential to disrupt a $3bn market, and we remain excited by the prospect of helping to build a world-leading business.”

 Ken Cooper Managing Director, British Business Bank, added:

“We are pleased that the MEIF Proof of Concept fund has been able to support further investment into Locate Bio.  Along with the bank’s other programmes the MEIF funds are investing to support SMEs in the region and are still very much open for business. This second round of funding recognises a business which has continued to make good progress despite the difficulties caused by Covid 19.”

The Midlands Engine Investment Fund project is supported financially by the European Union using funding from the European Regional Development Fund (ERDF) as part of the European Structural and Investment Funds Growth Programme 2014-2020 and the European Investment Bank.

 ENDS

 

 

Locate Bio Limited +44 (0)115 784 0041
John von Benecke, CEOjvonbenecke@locatebio.com
Media: Richard Hayhurstrichard@rhapr.eu

 

 Press contacts

Alison Dwyer

Head of Marketing & Communications

Mercia Asset Management PLC

+44 (0) 7464 480 137

alison.dwyer@mercia.co.uk

 

Pauline Rawsterne
PR Agent
Turquoise PR

+44 (0) 161 860 6063
+44 (0) 780 163 9816

pauline@turquoisepr.co.uk

 

About Mercia Asset Management PLC

Mercia is a proactive, specialist asset manager focused on supporting regional SMEs to achieve their growth aspirations. Mercia provides capital across its four asset classes of balance sheet, venture, private equity and debt capital: the Group’s ‘Complete Capital Solution’. The Group initially nurtures businesses via its third-party funds under management, then over time Mercia can provide further funding to the most promising companies, by deploying direct investment follow-on capital from its own balance sheet.

Mercia has a strong UK regional footprint through its eight offices, 19 university partnerships and extensive personal networks, providing it with access to high-quality deal flow. Mercia has almost £0.8billion of assets under management and, since its IPO in December 2014, has invested over £90.0million across its direct investment portfolio.

The Group raises its own Venture Capital Trusts (VCTs) and Enterprise Investment Scheme (EIS) Funds and details about open offers can be found through Mercia’s website.

Mercia Asset Management PLC is quoted on AIM with the epic “MERC” and includes the following wholly owned subsidiaries –

  • Mercia Fund Management Limited is authorised and regulated by the FCA under firm reference number 524856
  • Enterprise Ventures Limited is authorised and regulated by the FCA under firm reference number 183363
  • EV Business Loans Limited is authorised and regulated by the FCA under firm reference number 443560

www.mercia.co.uk

About the Midlands Engine Investment Fund (MEIF)

The Midlands Engine Investment Fund will invest in Debt Finance, Small Business Loans, Proof of Concept and Equity Finance funds, ranging from £25,000 to £2m, specifically to help small and medium sized businesses secure the funding they need for growth and development.

The Midlands Engine Investment Fund is operated by British Business Financial Services Limited, wholly owned by British Business Bank, the UK’s national economic development bank. Established in November 2014, its mission is to make finance markets for smaller businesses work more effectively, enabling those businesses to prosper, grow and build UK economic activity.

The Midlands Engine Investment Fund is supported by the European Regional Development Fund, the European Investment Bank, the Department for Business, Energy and Industrial Strategy and British Business Finance Limited, a British Business Bank group company.

The MEIF covers the following LEP areas: Black Country, Coventry & Warwickshire, Greater Birmingham & Solihull, Stoke-on-Trent and Staffordshire, The Marches, and Worcestershire in the West Midlands; and Derby, Derbyshire, Nottingham & Nottinghamshire (D2N2) Greater Lincolnshire, Leicester and Leicestershire, and South East Midlands in the East Midlands.

The project is receiving up to £78,550,000 of funding from the England European Regional Development Fund as part of the European Structural and Investment Funds Growth Programme 2014-2020. The Ministry for Housing, Communities and Local Government is the Managing Authority for European Regional Development Fund. Established by the European Union, the European Regional Development Fund helps local areas stimulate their economic development by investing in projects which will support innovation, businesses, create jobs and local community regenerations. For more information visit www.gov.uk/european-growth-funding.

The funds in which Midlands Engine Investment Fund invests are open to businesses with material operations, or planning to open material operations, in, the West Midlands and East & South East Midlands.

The British Business Bank has published the Business Finance Guide (in partnership with the ICAEW, and a further 21 business and finance organisations). The guide, which impartially sets out the range finance options available to businesses and provides links to support available at a regional level, is available at www.thebusinessfinanceguide.co.uk/bbb

 

About the British Business Bank

The British Business Bank is the UK government’s economic development bank. Established in November 2014, its mission is to make finance markets for smaller businesses work more effectively, enabling those businesses to prosper, grow and build UK economic activity. Its remit is to design, deliver and efficiently manage UK-wide smaller business access to finance programmes for the UK government.

The British Business Bank programmes are supporting more than £7.2bn of finance to over 93,000 smaller businesses (as at end of September 2019).

As well as increasing both supply and diversity of finance for UK smaller businesses through its programmes, the Bank works to raise awareness of the finance options available to smaller businesses:

  • The Business Finance Guide (published in partnership with the ICAEW and a further 21 business and finance organisations) impartially sets out the range of finance options available to businesses at all stages – from start-ups to SMEs and growing mid-sized companies. Businesses can take the interactive journey at thebusinessfinanceguide.co.uk/bbb.
  • The new British Business Bank Finance Hub provides independent and impartial information to high-growth businesses about their finance options, featuring short films, expert guides, checklists and articles from finance providers to help make their application a success. The new site also features case studies and learnings from real businesses to guide businesses through the process of applying for growth finance.

As the holding company of the group operating under the trading name of British Business Bank, British Business Bank plc is wholly owned by HM Government and is not authorised or regulated by the Prudential Regulation Authority (PRA) or the Financial Conduct Authority (FCA). The British Business Bank operates under its own brand name through a number of subsidiaries, none of which are authorised and regulated by the FCA.

British Business Bank plc and its principal operating subsidiaries are not banking institutions and do not operate as such. A complete legal structure chart for British Business Bank plc and its subsidiaries can be found on the British Business Bank plc website.