Mercia Technologies, the national investment group focused on the identification, creation, funding and scaling of innovative technology businesses with high-growth potential from the UK regions, has made a new direct investment of £500k into Locate Bio Limited.
Locate is a specialist regenerative medicine and medical device company based in Nottingham. The Locate team has been working for over a decade on developing a novel drug delivery system (TAOS®) and associated gene editing technologies (IntraStem), with an initial focus on orthopaedic applications.
Its lead product is a treatment for osteomyelitis, for which Locate has partnered with a major European medical device developer. In addition, it is developing a product to precisely control bone growth, a significant clinical problem with a $7.0billion worldwide market.
Mercia’s investment will be used to further expand Locate’s existing product portfolio as well as new product opportunities utilising its IntraStem technology. The global regenerative medicine market is estimated to be worth $20.0billion and is forecast to be growing at a CAGR of 26.0%.
Following this initial investment Mercia holds a 6.0% equity stake in Locate. This direct investment follows on from an initial investment by Mercia’s third-party managed funds.
Dr Ian Wilding, Chairman of Locate, said: “The investment from Mercia is a strong endorsement of Locate’s technology platform and pipeline of regenerative medicines. These funds will enable us to conduct key preclinical studies to help consolidate our position as a next generation cell and gene therapy company.”
Julian Viggars, Chief Investment Officer of Mercia Technologies PLC, said: “Locate demonstrates how Mercia can support the coupling of compelling, proprietary, university-derived technology with a strong team and clear market advantages developed within the Midlands, initially through our managed funds.
“The team at Locate has now successfully moved from the research and development phase to commercialisation. We have been impressed by this transition and foresee considerable potential for delivering shareholder value in the medium term.”