BOSTON--(BUSINESS WIRE)--Allied Minds (LSE: ALM), an innovative U.S. science and technology development and commercialization company, today announces that through its newly formed subsidiary, ABLS Capital, it has secured investment commitments of $80 million to fund up to ten potential lead optimization programs of promising drug development opportunities that have successfully completed an initial candidate feasibility program.
Pursuant to the terms of the ABLS partnership formed between Allied Minds and BMS in 2014, BMS is committed to fund an additional $20 million along with these commitments. Investors in ABLS Capital include Woodford Investment Management (committing to fund up to $40 million), Invesco Asset Management (committing to fund up to $20 million), as well as Allied Minds and others.
ABLS is a drug discovery company focused on identifying and developing biopharmaceutical innovations from leading U.S. universities and research institutions that it believes have significant therapeutic and commercial potential. ABLS focuses on early-stage opportunities in key therapeutic areas, including fibrosis, cardiovascular, oncology, immunology and genetically defined diseases. ABLS forms and funds new subsidiary companies to conduct an initial feasibility program on identified discoveries. Upon completion of a successful feasibility program, ABLS arranges for additional funds to be provided to such ABLS subsidiary for the next stage of development. ABLS Capital will provide 80 percent of the funds for this critical next stage, and together with the 20 percent of funds provided by BMS, will ensure that up to ten ABLS subsidiaries will have the necessary capital to seek to identify pre-clinical drug candidates.
Chris Silva, CEO of Allied Minds, said: “This is another exciting step forward for achieving the goals of ABLS, which was formed less than two years ago. Backed by supportive new investors and together with our partner Bristol-Myers Squibb, we have secured sufficient funding commitments for the pre-clinical development of up to ten drug candidates. Each of these have the potential to address areas of great unmet medical need across very sizeable markets.”
ABLS Capital’s sole purpose is to co-invest with BMS and Allied Minds. The objective is to generate high returns in drug discovery with a significantly lower risk profile. The risk to Allied Minds shareholders is reduced in two ways: early exit potential to partner BMS at pre-agreed terms upon the successful identification of pre-clinical drug candidates, and investment in opportunities of strategic interest to BMS only after they have successfully completed their respective initial feasibility phase.
For Allied Minds shareholders, the ABLS Capital vehicle provides a funding model that further lowers risk exposure to the drug discovery process due to the support of third party investor commitments. In addition, where the lead optimization phase is successful, this model may provide an accelerated timeline to monetization on pre-agreed terms, with additional returns through the potential for milestone and royalty payments.
To date, ABLS has launched three subsidiaries to license and initiate development work on proprietary assets from Yale University, Harvard University and NYU School of Medicine, respectively. If any of these subsidiaries are successful in their initial feasibility studies, then ABLS Capital financing commitments may soon be put to work to fund the lead optimization phase and the identification of pre-clinical drug candidates for potential sale to BMS.
Notes to Editors
About Allied Minds
Allied Minds (LSE: ALM) is an innovative U.S. science and technology development and commercialization company. Operating since 2006, Allied Minds forms, funds, manages and builds products and businesses based on innovative technologies developed at leading U.S. universities and federal research institutions. Allied Minds serves as a diversified holding company that supports its businesses and product development with capital, central management and shared services. More information about the Boston-based company can be found at www.alliedminds.com.
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