Locate Bio, a regenerative medicine company focused on orthobiology, has raised an oversubscribed equity investment of £ 10million in a fundraising round co-led by existing shareholder Mercia Asset Management and the new investor BGF.
The funding will be used to advance Locate Bio’s proprietary regenerative orthobiologic product pipeline to patients, with key clinical and regulatory milestones expected to catalyze growth over the next two years.
The investment brings the total funds raised by Locate Bio to over £ 18million. The company’s primary development product is called LDGraft, and it is a low-dose, controlled-release rhBMP-2 for the treatment of degenerative disc disease. In September 2020, Locate Bio licensed several advanced stage orthobiological assets from the Royal College of Surgeons in Ireland (RCSI) University of Medicine and Health Sciences. The acquisition of these products accelerated Locate Bio’s ambitions to build a diversified orthobiology company.
Locate Bio aims to develop a suite of advanced technologies that meet the performance limits of existing products and enable orthopedic surgeons to improve the lives of people with debilitating diseases. The company received two breakthrough device designations from the U.S. Food and Drug Administration in early 2021 for CognitOss and Chondro3, a biomimetic graft for osteochondral injury. CognitOss is a one-step therapy that combines topical delivery of therapeutically appropriate levels of antibiotics from a “smart material” designed to respond to the presence of infection and promote bone regeneration. It is designed to treat osteomyelitis, a debilitating inflammatory bone infection.
John von Benecke, CEO of Locate Bio, said: “This investment cycle is truly transformational for Locate Bio and I would like to thank Mercia for their continued support and collaboration and welcome BGF. We are developing a suite of promising next-generation orthobiological products that have the potential to disrupt the market and bring significant benefits to patients with debilitating diseases. Following our split from the internationally recognized School of Pharmacy at the University of Nottingham, we bring the strength of controlled drug delivery to the predominantly medical device field of orthopedics. We continued to make good progress in our strategy of building a world-leading diversified orthobiological business, which resulted in this oversubscribed funding round. This funding will allow us to further develop our exciting portfolio of differentiated products as we enter our next phase of growth. ”
Peter Dines, COO of Mercia Asset Management, added: “As Mercia’s representative on the board of directors of Locate Bio, this latest investment demonstrates the significant potential market value and global reach of the products that Locate Bio’s is currently developing. . This investment, alongside our active approach to supporting the business and its leadership team, is another example of how our comprehensive connected capital can help accelerate growth, with businesses supported not only by our balance sheet, but also by our managed funds and syndication partners.
Jonathan Earl, investor at BGF, said: “Locate Bio represents a fantastic opportunity to invest in an innovative medical technology company, with several products in development, a large addressable market and a very experienced management team with a proven track record in the industry. We look forward to helping the company achieve its growth potential and supporting the management team as it advances through the clinical and regulatory pathways required to commercialize its technology and deliver better patient outcomes. “