IP Group said its portfolio company Microbiotica had raised £36m to advance its lead microbiome drug into mid-stage clinical trials.
The science and technology investor said Microbiotica, which develops orally dosed medicines based on the gut microbiome, would use the money to take its drug MB310 into Phase 2 testing as a treatment for ulcerative colitis, a form of inflammatory bowel disease.
The move follows positive results from an earlier-stage trial that met its goals and showed a statistically significant improvement in remission compared with placebo.
IP Group invested £4m in the funding round, which was led by the British Business Bank and included existing backers such as Tencent and Cambridge Innovation Capital. Following the round, IP Group will hold 16.4% of Microbiotica, a stake it values at £24.1m.
Greg Smith, Chief Executive of IP Group, said: “Microbiotica has made exciting progress in translating world-class microbiome science into potential new medicines for patients. The positive results from MB310 provide a strong foundation for its next stage of development, and we are pleased to increase our investment alongside a high-quality syndicate of investors. We look forward to supporting the team as it takes this highly innovative approach forward.”