Diurnal, a Cardiff-based drug technology company, has announced a fundraising of £6m to support further trials of its products to treat hormone deficiencies.
IP Group has committed up to £4.1m of the £6m round which, if invested in full, would give the intellectual property investor a 51.7 per cent stake in the business.
The cash raised will be used to complete a phase three trial programme for Chronocort, the lead product being developed by Diurnal. It is a hydrocortisone which allows for release of hormones in a manner that mimics the natural circadian rhythm.
Alan Aubrey, chief executive of IP Group, said: “This funding is intended to support Diurnal through its phase three trial as it seeks to bring Chronocort to market.
“Diurnal has made impressive progress this year and is a great example both of the latent value in IP Group’s biotech division and of IP Group’s commitment to supporting later-stage portfolio companies.”
Diurnal was spun out of Sheffield University and moved to Wales in 2010.