$400m Edinburgh drug firm duo net £125m after sale

Dr Tom Brown, 48, an Oxford University scientist, and Peter Trill, 41, a former investment manager, own about 46 per cent of the company which has been backed by the Scottish Investment Bank.

Iomet specialises in the discovery and development of small molecules for the treatment of cancer.

It will become a wholly-owned subsidiary of MSD, known as Merck in the US, as a result of the deal worth up to $400m (£276m), subject to the achievement of targets.

Scottish Enterprise’s pay-out after the sale will be worth up to £28m.

Iomet was founded in 2010, and is one of several ventures created by Mr Trill and Dr Brown since they began developing partnerships with university researchers.

In 2012, they moved into Edinburgh’s BioQuarter, a venture involving Scottish Enterprise, NHS Lothian and Edinburgh University.

The company specialises in the discovery and development of small molecules for the treatment of cancer, focusing on immunotherapy and cancer metabolism.

Eric Rubin, from MSD Research Laboratories, said: “By harnessing the power of the immune system, we are already witnessing great advancements in the treatment of cancer.

“The acquisition of IOmet is a further example of MSD’s commitment to fully realising the potential of this rapidly evolving field through our existing innovative portfolio as well as the acquisition of promising immunotherapeutic candidates.”

Deputy First Minister John Swinney said: “The Scottish government strongly supports the life sciences sector in Scotland and this news is testament to the intellectual vibrancy and strong commercial attractiveness of Scotland’s life science businesses.”