September 19, 2021

VSA Capital Market Movers – Frontier IP Group

Exscientia Limited (“Exscientia”), UK holding company of Frontier IP Group, announced yesterday that it has entered into a US $ 70 million collaboration, over a four-year period, with the Strategic Investment Fund (SIF) of the Bill & Melinda Gates Foundation to develop viral therapeutics against the coronavirus and other viruses with pandemic potential.

VSA Morning Technology Commentary, 09/09/21

Frontier IP Group ()

Exscientia Limited (“Exscientia”), UK holding company of Frontier IP Group, announced yesterday that it has entered into a US $ 70 million collaboration, over a four-year period, with the Strategic Investment Fund (SIF) of the Bill & Melinda Gates Foundation to develop viral therapeutics against the coronavirus and other viruses with pandemic potential.

Exscientia uses AI on its technology platform, from target identification to drug design and patient selection, to accurately design new drugs.

In its announcement yesterday, Exscientia noted that collaboration with the Bill & Melinda Gates Foundation will initially focus on the development of broad-spectrum coronavirus agents (e.g. SARSCoV-2 and its variants, MERS), including the acceleration of Exscientia’s main program, which targets the main proteases (Mpro) of SARS-CoV-2, the virus responsible for COVID-19. Subsequently, the collaboration will expand to develop therapies for influenza and Paramyxoviridae (eg, Nipah), with the potential to develop additional programs as identified by the joint team.

Exscientia is gaining ground commercially and securing significant investments. In May 2021, Exscientia announced that it had entered into a collaboration agreement with Bristol-Myers Squibb Company (NYSE: BMY) to accelerate the discovery of small molecule therapeutic drug candidates in multiple therapeutic areas, including oncology and immunology. Agreement with Bristol Myers Squibb includes up to US $ 50 million in seed funding, up to US $ 125 million through potential short and medium term milestones, and clinical, regulatory and commercial payments additional ones that carry the potential value of the agreement beyond the United States. $ 1.2 billion.

Exscientia completed a $ 100 million Series C funding round and in April 2021 a $ 225 million Series D funding round led by SoftBank’s Vision Fund 2i and other major investors. The valuation of the 2021 Series D and Series C rounds was not disclosed. Following the Series C cycle, Frontier IP held a 2.1% stake in Exscientia.

Of the 19 portfolio companies in which Frontier IP has stakes, a number are at a point of accelerating their business development, paving the way for increased valuation or potential exit. The Group’s holdings are located in four high-growth technological poles including: artificial intelligence, robotics and big and sparse data; pathogens and cell imaging; food and agrotech; and artificial particles and materials.

Frontier IP has a proven track record in marketing University IP to develop its own BPA and NAV by increasing the valuations of portfolio companies. Frontier IP also announced on April 28 that “due to the overall transactions across the entire portfolio during the year to date, the Group expects the result for the year ending June 30, 2021 to be significantly ahead of management’s expectations with a significant contribution to the result being the increase in the book value of the Group’s stake in Exscientia.

We believe that Frontier IP represents an excellent opportunity for investors to gain exposure to early-stage technology companies, based on cutting-edge intellectual property, which meet the needs and demands of international markets. While Frontier IP has yet to have an exit to crystallize cash value, and the timing and value of potential exits is difficult to assess, given the number of companies in Frontier IP’s portfolio currently at points. inflection, this becomes a real possibility over the next twelve months.

As a result, we believe that stocks offer distinct upside potential. To buy

#Indicates the stock of the VSA house.
All disclosures and supporting graphics can be found in the PDF version.

Phil Smith, Research Director, Technology | T: +44 (0) 20 3617 5187 | E: [email protected]

Search | T: +44 (0) 20 3005 5000 | E: [email protected]

VSA Capital Limited, New Liverpool House, 15-17 Eldon Street, London EC2M 7LD | www.vsacapital.com

This email is intended for the designated recipient only. It may contain privileged and / or confidential information. If you are not one of the intended recipients, please notify the sender immediately and destroy this email: any disclosure, copying to any person or any action taken or omitted based on this email is prohibited and may be illicit. All opinions expressed in this message are those of the individual sender, except where specifically stated to be the opinion of VSA Capital Limited, its subsidiaries or associates. While every effort is made to protect incoming and outgoing email messages, VSA Capital Limited and its subsidiaries or associates cannot guarantee that attachments are virus-free or compatible with your systems and do not accept any responsibility for viruses. or computer problems encountered.

VSA Capital Limited will use your personal information to administer your account in order to provide any products and services that you have requested from us. Your personal information will be kept secure and will not be shared with any other party unless you give your consent to do so.

VSA Capital Limited is authorized and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
The Company is registered in England under number 2405923 at New Liverpool House, 15-17 Eldon Street, London EC2M 7LD.


Source link