Retrogenix

Background

When Dr Jim Freeth recognised an unmet need to understand what drives the side effects of drugs, he launched Retrogenix to capitalise on the demand from large pharma companies for this capability.

 

The company developed a specialist cell microarray technology to screen drugs against human proteins. The technology can also be used in drug re-profiling – testing drugs which have already been launched to market for their adaptability to treat other symptoms and illnesses. With the cost of taking a drug to market in the region of $1bn, this technology offers an attractive opportunity for pharmaceutical companies.

 

Objective

Retrogenix took premises at the Sheffield Bioincubator and Dr Freeth began networking to find potential investors who would back the company as it scaled up its services for pharmaceutical companies. He secured interest from a number of business angels at Venturefest and was seeking support from the programme to guide him through the minefield of pitching and negotiations.

 

Implementation

Dr Freeth joined the Access to Finance programme, managed by Grant Thornton, in March this year and took part in a mentoring session and a series of four day workshops.

 

The initial Market and Technology Assessment (MTA) carried out by experienced advisors helped Dr Freeth evaluate his investment proposition and identify the gaps in his knowledge and understanding of the market. The advisors asked questions which addressed areas the team had not considered and helped to assess where Retrogenix’s technology sits against its competitors.

 

The four day workshops gave Dr Freeth a good understanding of the legal and financial elements of investment and explored potential sources and structures of funding. The workshops also gave him the chance to hold one-to-one talks with specialists to discuss his specific needs and issues.

 

The mock investor panel presentation at the end provided Dr Freeth with the opportunity to put everything into practice with constructive feedback presented verbally and in a written report. As the mock investor panel was filmed, he was also able to review his style of presentation and improve it accordingly.

 

Dr Freeth was entirely new to deal negotiations and the workshops provided him with the expertise and confidence to get the best results for the company, now and for future investment opportunities.

 

Result

On completion of the Access to Finance programme, Retrogenix secured three business angels, two of whom will take an active role in the company as consultants. Neil Ewin and Mark Woodward of Ewin Woodward Development saw the commercial potential of Retrogenix’s technology and have invested both money and time into the company. Nick Stringer is the third investor who will be involved at board level.

 

Dr Freeth said: “The programme gave me the knowledge and skills to be able to negotiate effectively and achieve the best result for Retrogenix. The four day workshops gave me an in depth understanding of the equity landscape which was entirely new to me and the mock investor presentation was invaluable in teaching me how to pitch effectively to potential investors.”

 

Phil Whaley, programme manager at Grant Thornton, said: "Retrogenix's successful fund raising in these difficult market conditions is a reflection of the quality of both the team and business proposition on offer. The flexibility of the programme provided Jim with the tailored and targeted support he needed to conclude the deal.”

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