Syntropharma specialises in developing new ways of delivering drugs that help to reduce side effects and increase compliance amongst patients.
The company’s business model means that rather than investing millions of pounds in discovering new drug compounds, it aims to reformulate existing drugs which already have established global markets.
The company was founded by Andrew Gardiner and David McHoul in 2005 and quickly drew the attention of Scottish Enterprise Borders and the wider business community. Investors have been quick to recognise the potential of the model and the company has received backing from a consortium of investors including Borders-based angel syndicate Tweed Renaissance Investors Capital (TRI Cap), Highland Venture, Balmoral and Scottish Enterprise’s Scottish Co-Investment Fund.
Andrew Gardiner, Chief Executive Officer of Syntropharma, says: “The traditional model of a pharmaceutical business is to invest huge amounts of money in researching and testing new drugs but this can take years and is very risky for investors. We recognise that there are lots of drugs currently available that could be improved by reformulation. This often significantly enhances their usefulness for both doctors and patients.”
“By focusing on these drugs, we are tapping into markets which are already established around the world but more importantly, we have a much quicker route to market. Our model means we can get products to market within three or four years as opposed to the more traditional model which takes around 12 years.”
He added: “Over the past year, we have been working on the feasibility of two new product lines. With the capital now in place, we can now progress to the first phase of clinical trials for these while also looking at the feasibility of other product lines using the same model. ”
Syntropharma won Scottish Enterprise Borders’ Business Idea Competition in February this year and won incubator space at SEB’s Ettrick Riverside centre. The company has also been working with the local enterprise company to support its research and development activity and make connections with the business, legal and investment communities. The company was advised by corporate finance specialist DC Consulting.
Having secured its first round of funding, the company is now relocating to bigger premises at SEB’s Tweed Horizons Business Centre to enable it to continue its expansion plans. The company also hopes to recruit new staff particularly around marketing and business development.
David Gass, Chief Executive of Scottish Enterprise Borders, says: “Winning the Business Idea Competition was a key turning point in what has been a tremendously successful first year in business for Syntropharma and we are delighted that we have been able to play some role in its success.”
“The company has huge potential for explosive growth and is exactly the kind of company that Scottish Enterprise Borders is keen to work with to help diversify the local Borders economy and create higher value jobs for the local area. Going forward, we want to encourage more life science start up companies to recognise the value of locating in the Borders, with high quality and affordable business accommodation, a high quality of life and still in such close proximity to the buoyant life sciences sector in Edinburgh and Midlothian.”
Syntropharma has also strengthened its board with leading business and life sciences industry representatives. Sam Taylor from TRI Cap has become chairman while Richard Aird, also of TRI Cap, and Jim Reid, CEO of Aberdeen-based Haptogen have joined as non-executive directors along with David McHoul.
Robert Dick, Chairman of TRI Cap, comments: “It gives us considerable satisfaction to have been able to take the lead in arranging the funding of Syntropharma. The founders have created a novel new pharmaceutical company with the potential to provide its shareholders with a worthwhile return on their investment”.
Notes To Editors
– The Scottish Co-Investment Fund is a £45 million equity investment fund set up by Scottish Enterprise, and part funded by the European Regional Development Fund, which invests up to £500,000 in company finance deals of a total value up to £2 million. The aim of the fund is to increase the risk capital available for investment opportunities in small but ambitious Scottish companies and to encourage more funders to become involved in the early stage investment market. Unlike a conventional venture capital fund, the Scottish Co-investment Fund invests only in partnership with private sector investors. The investment decisions are made by those private sector partners.
– Tweed Renaissance Investors Capital (TRI Cap) is a business angel syndicate based in the Scottish Borders, with the intention of investing in growth businesses in the Borders and beyond. Its founders include some of the Borders’ leading business people who, between them, have many years’ experience of building and investing in enterprises in the Borders and further afield. The syndicate has invested in a number of companies: Lab901 (May 2005), EctoPharma (November 2005), Outerlight (December 2005), Intrallect (May 2006) and GSS (June 2006). Visit www.tricapital.co.uk for further information.
For further information, please contact:
Neil McInnes,
Senior Media Relations Executive
Scottish Enterprise
Tel: 0131 313 6196 / 07881 517712
E-mail: neil.mcinnes@scotent.co.uk