Albiero (Sweden) - Jan 2008

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01 January 2008

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Nomura Phase4 Ventures has led a $27m round in Albiero, a Swedish biotechnology company spun-out from AstraZeneca. TVM Capital and Scottish Widows Investment Partnership also invested. The investors were attracted by the quality of the spin-out’s management team who possess strong experience in the discovery and development of drugs. The company’s assets and compounds were also a factor as they have a promising future with later-stage clinical trials on the horizon. The financial agreement, which limits AstraZeneca’s buy-back rights also worked well for the investor. As Nomura has been involved in three other pharmaceutical spin-outs, Albiero was keen to invite the venture sponsor to lead the investment round. The company anticipates receiving up to $40m in venture financing in a final close of the series A financing round and it is in the process of negotiating with other venture firms to complete the initial round. AstraZeneca will retain a minority equity interest in the business and take a seat on the board. The financial injection will enable acceleration of the pipeline of drugs and strengthen the core team.

Company

Gothenburg-based Albiero specialises in the gastrointestinal (GI) area and has secured a number of pre-clinical programmes from AstraZeneca, as well as several researchers with extensive experience in AstraZeneca’s GI research area. The decision to form the new business was a result of AstraZeneca’s strategic decision to concentrate on Nexium and internal GI research focused on gastroesophagael reflux disease (GERD). The business is currently in recruiting.

People

Nomura Phase4 Ventures managing director Dr Denise Pollard-Knight worked on the deal, together with Charles Sermon, Justin Duckworth and Alastair Mackinon. Pollard-Knight will take a seat on the board together with Alexandra Goll from TVM and Jan Mattson from Albiero’s management team. David Chiswell is the executive chairman of Albiero.

Advisers

Equity - Bristows London, (Legal)Equity - Fish & Richardson, (Other Due Diligence)

Sourced from: Nordic unquote" 71 (Feb 2008)