Cheshire biotech firm secures multi-million funding for demerger
Cheshire-based biotech company Redag Crop Protection has demerged from its parent company after securing a seven-figure investment.
Redag, the agrochemical arm of biotech business Redx Pharma, will operate from laboratories in Alderley Park, Cheshire and will create 20 scientific research posts in its first three years of operation.
The demerger has been facilitated by a substantial fundraising package arranged by Manchester-based corporate finance boutique Acceleris Capital.
The North West Fund for Venture Capital, which is managed by Enterprise Ventures, has invested alongside existing Redx shareholders and new private investors.
Launched in 2010, The North West Fund for Venture Capital is part of the £155 million North West Fund, which provides funding for SMEs in the region and is financed jointly by the European Regional Development Fund and the European Investment Bank.
Redag was established two years ago as a subsidiary of Redx under the leadership of Bill Thompson, who will become CEO of the newly demerged business.
Neil Murray, chief executive of Redx Pharma, said: “We wish Bill and his team every success in taking Redag forward.
“Redx itself has taken the decision to focus on human health as we have an intensely busy development pipeline for the coming years. It follows that agrichem has become non-core for our business.”
Redag CEO Bill Thompson said: “We’ve achieved very promising results since our inception and have proof of concept in a range of areas.
“The investment we’ve received and the move to Alderley Park will help us take the development of the business to the next level.
“The Crop Protection industry typically spends US$250 million over a nine year period testing up to 140,000 candidate compounds in order to bring a single new product to market.
“Our approach will help secure fast and efficient access to an extensive pipeline of new candidates at lower cost. We are going to be the discovery engine for the agrochemical industry.”
Looking to promote your product/service to SME businesses in your region? Find out how Bdaily can help →