GlaxoSmithKline takes stake in biotech start-up
Autifony Therapeutics has preclinical assets with potential for use in hearing loss treatments
GSK’s subsidiary Glaxo Group Limited will take a 25.4% stake in biotech start-up Autifony Therapeutics, representing a £1.25m investment in the company.
Glaxo Group will sit alongside investors Imperial Innovations and SV Life Sciences, which have each invested £5m in Autifony.
Autifony has preclinical assets targeting voltage-gated ion channels, the modulation of which is thought to have potential in the treatment of hearing disorders, including noise-induced hearing loss and tinnitus. Following the funding round GSK will own 13.2% of Autifony.
Autifony will issue 850,000 Series A ordinary shares and 571,429 Series A preferred shares to GSK in exchange for compounds and associated patent applications and data.
GSK will be eligible for a further 550,000 A ordinary shares on achievement of a pre-determined milestone, after which further investment will be made by the existing investors.
Proceeds from the funding will be used to accelerate preclinical development with the objective of starting human trials in early 2013.