Alida Capital International (ACI) is a new business angel syndicate of entrepreneurs whose core members have considerable international experience in the biopharmaceutical sector.
They worked together as founders of the Edinburgh based biopharmaceutical company, Bioenvision Ltd, which they transformed from a virtual start-up operation to a NASDAQ National listed biotech company in just over four years. Their success culminated in the acquisition of Bioenvision for $345 million in 2007 by Genzyme Corporation.
They continue to work together, and have invested since the sale of Bioenvision in a number of innovative high growth companies within the biopharmaceutical sector before deciding to formalise their investment activity in the ACI syndicate.
Hugh Griffith, CEO and gatekeeper of the recently formed syndicate, says “There are many areas of medicine that urgently need new and effective treatments, or better ways of delivering established medicines. These are often overlooked initially by the large pharmaceutical companies for a variety of reasons including total market potential. However, they are ideal areas in which biotechnology companies can develop innovative, first-in-class and best-in-class products and rapidly exploit the commercial opportunity. This gives companies the exciting opportunity to bring new therapies to market and make a real difference to the treatment of serious illnesses.”
Alida Capital is looking to invest in companies which have clinical data from Proof of Concept studies, and have identified a clear regulatory strategy to marketing approval. Potential investees should have products which target areas of unmet medical need, with strong scientific and medical rationale, with patents granted or close to grant.
ACI will invest between £50k and £1 million in any one company, and expects to be able to apply the expertise of its core members to help investee companies with their product development, regulatory, and commercial strategies. The syndicate will consider co-investment with other angel syndicates for larger deals, and is a member of the LINC Scotland SCF Co-Investment Group.
The syndicate’s members have strong networks throughout Scotland, and work directly with many of Scotland’s leading academic, medical and developmental institutions, where a number of potential investment opportunities have already been identified. In addition, their international experience should enable the syndicate members to channel inward capital investment from outside Scotland.
Alida Capital expects to invest in one or two Scottish companies with SCF co-investment per year (and in others outside Scotland), to create a portfolio which will include some six Scottish ventures at different stages of development over a four year period. To achieve this level of investment it will be necessary for ACI to consider approximately 20 new proposals each year, of which it is envisaged up to four will be taken to detailed due diligence.
Alida Capital are currently not accepting unsolicited proposals as these could affect their capacity to fully evaluate existing opportunities. In the future, the majority of deal flow will be sourced through syndicate members, who will carry out initial screening, and through referrals from known third parties. Alida Capital is in the process of completing its first investment into a Scottish based biopharmaceutical company dedicated to the commercialisation of innovative, rationally designed medicines that meet its criteria of addressing significant unmet medical needs.
Nelson Gray, a non executive director of LINC Scotland where he chairs the good practice group, and European Business Angel of the year in 2008, will be working with Alida for an initial 12 month period acting as advisor.
Contact: Hugh Griffith
0131 248 3660
www.alidacapital.com
