Maven VCTs lead investment in ADC Biotechnology

Glasgow-based investment house Maven Capital Partners has announced that it is leading an investment in ADC Biotechnology (“ADC Bio”) to support the construction of a dedicated pharmaceutical manufacturing facility at a site in Deeside, North Wales, creating 50 new scientific jobs.

The facility will cost £8 million to construct, a substantial part of which has been funded by a syndicate of technology investors, which includes Maven VCTs, Seneca and Finance Wales, and the Welsh Government, which is providing a grant.

ADC Bio operates in the highest growth sector within oncology therapeutics and has developed a unique patented Lock-Release technology for the development and manufacture of Antibody Drug Conjugates (ADC) group of cancer therapies which are designed to specifically target and kill tumour cells. ADCs are the next generation of highly effective anti-cancer drugs which result in reduced side effects compared to conventional chemotherapy and could provide treatment for a wide range of cancers.

The Lock-Release technology facilitates greater production efficiencies and a substantial reduction in the capital cost of manufacturing these drugs for commercial sale.

The new facility will allow ADC Bio to complete its strategic move into clinical and commercial ADC manufacturing, and convert its already strong customer base, which is currently focussed on manufacturing for R&D applications and includes large pharmaceutical companies, to higher value clinical development work. Many such clients have already confirmed their commitment to using the facility, which ensures an established customer base ready to take up manufacturing capacity on completion.

Maven noted that the worldwide market for the manufacture of ADC clinical trial materials has insufficient capacity and ADC Bio is being asked to supply large quantities of ADCs for use in trials. As a result, ADC Bio anticipates strong demand for the manufacturing facilities from pharmaceutical companies in the US and Europe, particularly given the added value and production efficiencies the Lock-Release technology offers.

The management team, led by CEO Charlie Johnson, have extensive combined industry experience and are among the global leaders in this specialist field, having already successfully established a clinical drug manufacturing facility in Scotland.

Melanie Goward, Investment Director at Maven, said: “ADC Bio is one of the pioneers in manufacturing of oncology therapeutics. We are delighted to be leading the consortium of investors to fund the company’s new innovative clinical facility in Wales, as well as creating highly skilled new jobs in the area. This a hugely exciting time for ADC Bio given the growing global demand for anti-cancer drugs and we have every confidence that the company will benefit from the cost efficiencies of its Lock-Release technology. We look forward to working with Charlie Johnson and his highly skilled team as they grow the already strong customer base.”

Charlie Johnson, CEO at ADC Biotechnology Limited, said: “The investment and development in the new facility will see the creation of a host of new, degree level and above jobs locally. We are very confident about orders and already have confirmation that many of our existing customers will use the new facility for future projects and we expect to add a number of new drug projects from companies in the USA and Europe. It’s really exciting that some of the world’s most advanced therapies will be developed here in the North West and we would like to thank the teams at Maven, Seneca, Finance Wales and the Welsh Government for their support and investment to help fund this project.”

Paul Lee, Deputy Fund Manager, Technology Venture Investments at Finance Wales, said: “Since our entry investment in 2011, we’ve supported ADC over interim additional rounds, and we are pleased to extend such support as a key participant in the current syndicated round. Moving into GMP manufacture is a major “step change” for ADC’s development and technical offering. ADC is a high growth technology company which is creating highly skilled jobs in north Wales and we’re looking forward to continue working with them as they expand.”