Fusion IP plc

Fusion IP, plc.
Public (LSE: FIP)
Industry Business Incubation
Venture Capital
Seed Funding
Early Stage Investment
Intellectual Property Commercialisation
Founded Sheffield, South Yorkshire (2001 (2001))
Headquarters Sheffield, United Kingdom
Key people

Doug Liversidge CBE (Chairman)

David Baynes (CEO)
Website www.fusionip.co.uk

Fusion IP, plc. is a UK based listed company that capitalises on intellectual property extracted from four UK based universities, three of which are part of the Russell Group of universities:

It does this by creating companies around commercially opportunistic research and discoveries from the four universities. These companies are grown and then eventually sold (see spin-out companies).

Fusion IP is one of a handful of companies that specialise in the commercialisation of university intellectual property within the UK through the sourcing of funding from public markets.[1] The other two notable companies operating the same field are IP Group plc (LSE: IPO) and Imperial Innovations plc (LSE: IVO). Additionally, smaller companies operate within the field of university intellectual property but do not have such a focus on spinning out companies, nor a formal contractual relationship with universities over intellectual property rights.

Fusion IP has 20 companies currently within its portfolio. It creates between 2 and 3 new companies each year.

Incubation Model

Fusion IP’s model of growing companies focuses around a business incubation model in which Fusion IP employees initially run, then continue to support the growth of every company within its portfolio.

Stages to the Fusion IP company creation and growth model:

  1. Review commercial opportunities produced by university partners, selecting those with the most potential for further development - "mining for ideas"
  2. Convert the idea into a small start up company - incubation stage
  3. Grow the company using a traditional venture capital approach
  4. Sell the company

Partnerships

University Partnerships

Fusion IP has current intellectual property agreements with four UK universities, three of which are part of the Russell Group of Universities. Fusion IP intends to further increase the number of university agreements it holds in the future.

University of Sheffield

In 2005, Fusion IP signed a 10-year agreement with the University of Sheffield for the exclusive rights to commercialise all of their university-owned medical intellectual property, through either licensing or the creation of spin-out companies.
In July 2008, Fusion IP signed a new expanded agreement with the University of Sheffield to add all university owned intellectual property from physical sciences to the original agreement, such that Fusion had the rights over all of the University of Sheffield's intellectual property, through either licensing or the creation of spin-out companies. This new expanded agreement gives Fusion IP the exclusive rights to all physical sciences intellectual property until 2018, in addition to the exclusive medical intellectual property rights, which currently runs to 2015.

Cardiff University

In 2007, Fusion IP signed a second exclusive 10-year agreement with Cardiff University to commercialise all of their intellectual property. This agreement[2] was almost identical to that which the company entered into with Sheffield. This differed only through a limitation which requires Fusion IP to create a company around intellectual property in order to commercialise it.

University of Nottingham

Fusion IP partnered with the University of Nottingham in 2013. This was announced as part of a new £20m funding round. The agreement is less formal than the company’s first two agreements, and in effect gives Fusion first “look-see” rights to IP generated at the University.

The agreement with the University is referred to as an MOU (Memorandum of Understanding).

Swansea University

Fusion IP partnered with Swansea University in 2013, at the same time as it entered an agreement with the University of Nottingham. The agreements for each university are identical.

Financing Partnerships

Finance Wales

The Finance Wales Group manages funds of more than £335 million and has invested more than £189 million. It entered an memorandum of understanding with Fusion IP during 2007 and renewed this agreement in 2013, at which time Swansea University was added to the terms of reference.

Finance Wales have co invested with Fusion IP in a number of companies including Diurnal, Medaphor, Q-Chip, Mesuro and Asalus.

IP Group

IP Group plc is a leading UK intellectual property commercialisation company, developing technology innovations primarily from its research intensive partner universities. IP Group provides more than traditional venture capital, providing its companies with access to business building expertise, networks, recruitment and business support.

Since its admission to AIM in 2003, the Group has raised approximately £85m of net proceeds from its shareholders (most recently through a placing raising £53m after expenses in June 2011). This has provided the Group with strong cash reserves from which to provide capital to its spin-out opportunities and portfolio companies as they develop.

Companies within the Fusion IP Portfolio (A-Z)

(As of 1 September 2013)

Company Brief Description of Company Function Year Company Founded Fusion Shareholding Current/Exit
Absynth Biologics Vaccines and antibodies to treat Staphylococcus aureus 2007 52% Current
Adjuvantix Prophylactic and therapeutic vaccines 2003 42.6% Current
Art of Xen New anaesthetic drugs 2002 31.6% Current
Asalus Medical Instruments Medical device for surgical procedures 2009 44% Current
Asterion Therapeutic treatments for diseases 2003 38% Current
Bitecic 2006 10% Current
Diurnal Pharmaceutical solutions to drug releases within the body 2004 41.8% Current
Fault Current Ltd Commercial electricity products 2012 Current
I2L Research Research company 1994 31% Current
iterate Manufacturer testing equipment 2010 40% Current
Magnomatics Magnetic gearboxes and motors 2006 31.5% Current
Medaphor Ultrasound training devices 2004 39% Current
Medella Therapeutics Monoclonal antibodies to inhibit the action of Adrenomedullin (ADM) 2007 60% Current
Mesuro Design software 2008 46.5% Current
Nanotether Discovery Science Manipulation of molecules 2012 21.5% Current
Perlemax Bubble generators for commercial application 2011 35% Current
Phase Focus Microscopy 2006 34% Current
proFlu Pharmaceutical product 2012 Current
Progenteq Novel cartilage replacement therapy 2010 48% Current
Q-Chip Pharmaceuticals 2003 1.5% Current
Seren Photonics LED production 2010 40.2% Current
simCYP Drug modelling software 2001 24.9% (sold for £32m) Exit
zilico Cervical cancer diagnostics 2006 3.6% Current

References

  1. Vincent, Matthew (30 August 2013). "Apply those little grey cells when exploring science spin-offs". Financial Times. Retrieved 9 September 2013.
  2. "Cardiff Agreement passed by shareholders at EGM". Fusion IP plc. Retrieved 5 September 2013.
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