Future Capital Partners (FCP) has launched a partnership designed to invest in a number of groundbreaking medical technologies. The firm is partnering with NeuMedix, a leading global medical research commercialisation group of companies, to give investors access to a portfolio of technologies focused on fighting major global diseases.
The new UK Limited Liability Partnership, Ashwins Medical Ventures LLP (the “LLP”), will have access to proprietary medical technologies from NeuMedix’s extensive portfolio of medical technologies from across the globe (supported by extensive patented technologies). It is intended that the LLP will invest in six specific technologies designed to prevent or cure illnesses which affect millions of people every year.
The technologies selected, including treatments for breast cancer, tuberculosis and cystic fibrosis, are all in late stage clinical trials. By spreading the investment across a diverse range of technologies, the LLP not only helps to fund the development of treatments across the medical spectrum, but also enhances the probability of financial success of the portfolio of medical assets. The six technologies are:
a prognostic test for colorectal cancer;
the use of a technology platform for the treatment of breast cancer, tuberculosis and cystic fibrosis;
a therapeutic treatment for Attention Deficit Hyperactivity Disorder (ADHD);
a treatment for Alzheimer’s Disease;
a neuro protective treatment known as Cerecare; and
a surgical device for the relief of spinal stenosis conditions.
Corporate investors in the LLP will have access to anticipated long term, uncapped returns based on the actual performance of the technologies, the revenue projections for which have been independently verified by two respected medical technology valuation teams, Karkalla International Holdings and Acuity Technology Management. The LLP will be entitled to 11% of revenues from the commercialisation of the technologies. The technology portfolio has been valued at $3 billion, assuming successful commercialisation. Each member of the LLP will be entitled to share the revenue in proportion to their capital invested.
NeuMedix evaluates hundreds of medical technologies, before funding those that it believes have potential to be commercially viable through the various stages of the commercialisation process. NeuMedix manages this process from discovery to academic study to clinical trials and eventually to deals with manufacturers and distributors, once the treatment is tested and approved.
Furthermore, the tax-efficient structure of the investment will provide significant financial downside protection. Corporate investors will benefit from immediate cashflow benefits of up to 38% and a significant reduction in their effective corporation tax rate.
The LLP has a minimum cycle of seven years, will be managed in London, and will target UK companies as investors. The LLP will look to invest a combined total of between GBP10m and GBP40m in the portfolio of technologies. It is intended that identical partnerships will be set up on a quarterly basis going forward to invest in additional technologies which have the potential for commercial success.
Graham Webber (pictured), Director of Structured Finance at Future Capital Partners, says: “This is an extremely attractive investment opportunity that offers both highly compelling returns from the very first dollar of revenue earned and a strong philanthropic appeal. Investors would typically not be able to access the high returns available from this type of medical research without exposure to considerable equity risk. The potential returns from the success of the patents are enormous and crucially the structure of this investment provides significant risk mitigation whilst sharing profits in ratio to the capital invested from the start of the investment.
“Our partnership with NeuMedix allows us to offer a unique proposition to UK corporate investors, since companies like them simply don’t exist in the UK. Neumedix are in a niche within the medical research industry that allows us to offer our investors access to new technologies with extremely high potential.”
Anthony Dickson, a Director of NeuMedix, says: “The Ashwins Medical Ventures LLP will play a crucial role in funding the development of medical technologies that we expect to save many thousands of lives and prevent horrible suffering for millions of people. As well as focusing on technologies that will make a real difference to disease mortality rates and human suffering, NeuMedix has concentrated on patents and technologies with the greatest chance of commercial viability. Of the hundreds of medical discoveries we have researched, these are some of the most promising, from both a medical and commercial standpoint. We believe that the technologies we have invested in and are looking to contribute to the partnership will have a significant long term impact on the medical industry introducing valuable technologies to countries throughout the world.”
The LLP represents a co-venture between two leading companies in their field. FCP has made investments of over GBP6 billion since 2000, while NeuMedix is one of Asia and Australia’s major research commercialisation companies that has generated revenues from medical development and commercialisation since 2004. The company has strong connections with academic centres around the world including medical institutes in the China, Australia and the US.
