Epidarex sells Sirakoss to VC-backed OssDsign

Sirakoss – a developer of synthetic bone-graft substitutes that span out of the University of Aberdeen – changed hands for an initial cash consideration of $11m plus milestone and royalty payments.

In a statement, the parties said Sirakoss's product complements OssDsign's craniomaxillofacial portfolio; commercial activities in the US are expected to begin immediately. 

A syndicate of investors comprising Epidarex, the Scottish Investment Bank, the Worshipful Company of Armourers and Brasiers and other existing shareholders invested £3.1m in a series-A round of funding for Sirakoss in 2014. Epidarex also participated in subsequent rounds.

Karolinska first backed OssDsign when the company was founded in 2011, and invested SEK 13.7m in July 2013. SEB Venture Capital then led a SEK 93m funding round for the company, alongside Swedish VC Fouriertransform and existing investor Karolinska Development in 2015. The fresh capital from the 2015 round was earmarked to fund further expansion into Europe for OssDsign, which at the time was selling its products in the Nordic countries, Germany and the UK.

This is the second exit for Epidarex this quarter, following the sale of Enterprise Therapeutics to Roche in a deal that included a £75m upfront payment. The transatlantic VC also closed its Epidarex Capital III fund on £102.1m in June, and is still raising a US-dedicated fund, which is expected to close in the coming months.

Company
Established in 2010, Sirakoss has developed Osteo3 ZP Putty, a nanosynthetic bone graft substitute designed to provide surgeons with a product for filling voids during spine and trauma bone grafting procedures. Based in Edinburgh, the company was spun out from the University of Aberdeen.

People
Epidarex – Sinclair Dunlop (managing partner).

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