RxCelerate, a UK-based contract research organisation (CRO) for drug discovery and development, has set up a corporate venture capital fund called RxCapital.
The vehicle will invest up to £1m ($1.2m) in each company it backs and is targeting developers of therapeutics for unmet medical needs. Investments come with no requirement for the company to use RxCelerate’s services.
RxCapital has made its first investment, participating in a $35m series A round for US-based Rivus Pharmaceuticals alongside VC firm Longitude Capital and multi-corporate-backed investment fund Medicxi. Rivus is developing HU6, a potential metabolic disease treatment currently in phase 2 clinical trials.
Nick Tait, RxCelerate’s chief financial officer, will manage the newly established fund. He said: “The formation of RxCapital marks an exciting new development for RxCelerate, allowing us to deploy capital from our highly profitable service business to support new entrepreneurs with a vision to change medicine.”
Jill Reckless, CEO of RxCelerate, added: “RxCelerate has a world-class team discovering and developing exciting new medicines for our clients. But, to avoid conflict of interest, we do not have any internal programmes and do not, therefore, benefit from owning successful assets.
“By establishing RxCapital, we are able to enjoy the economic upside of asset ownership without compromising our ability to work single-mindedly for the benefit of our clients.”
Photo of Nick Tait courtesy of LinkedIn.
