ReNeuron, a life sciences firm currently based in Guildford, UK, is set to relocate to Cardiff’s tech cluster after a £13.8m ($21.2m) investment from the £100m Wales Life Sciences Fund (WLSF).
The funding is part of a wider financing package of £33m backed by a consortium of investors including venture firms Invesco and Abingworth. Aside from the relocation, the funds will be used to begin Phase II trials into ReNeuron’s stem cell technology.
As part of the deal, Sir Chris Evans, Chairman of WLSF’s manager Arthurian Life Sciences, will join the company as a non-executive director.
Cardiff’s tech cluster is primarily centred around Cardiff University. Three other universities operate within the city: Glamorgan University, Cardiff Metropolitan University, and the Open University.
Commenting on the deal, Michael Hunt, chief executive of ReNeuron, said: “We are delighted with the support provided to us in this fundraising, both by the participating institutional investors, including specialists in the life sciences sector, and the Welsh Government. The overall funding package will transform the financial position of our business and its future prospects, and should allow us to take all of our therapeutic programmes through a Phase II proof-of-concept clinical study and to value inflection through commercial deals over the next three years.
“The Welsh grant package also enables us to take control over the manufacture of our stem cell therapy candidates as they get closer to market. We look forward to working with the Welsh Government to become part of a larger advanced-therapy manufacturing initiative to be established in South Wales over the coming years.”