Consort Medical plc and Precision Ocular Ltd have entered into strategic development and manufacturing agreement. The agreement will leverage both Bespak's device development and manufacturing capability as well as Aesica's manufacturing and filling capabilities.
The focus of this collaboration will be the development, scale-up and industrialisation of Precision Ocular's novel drug products and drug delivery system, which is designed to access specific small spaces in the eye and to provide unique drug distribution to tissues specifically involved in retinal diseases.
This unique approach effectively optimizes the pharmacokinetics and pharmacodynamics of both existing and new ophthalmic therapeutic agents. It may also increase therapeutic effectiveness, reduce side effects and minimize the frequency of treatment for certain patient groups. We believe Precision Ocular's proprietary drug products and drug delivery system has the potential to be a platform technology with broad applicability.
In addition, Consort Medical have subscribed to an equity financing completed by Precision Ocular. The financing will raise a total of £13.5m. Investors include Imperial Innovations, Hovione, NeoMed and Consort Medical plc. Of the £13.5m equity raise, Consort's investment will be a total of £3.3m, of which the first tranche will be £2.0m, giving the Group a 12.2% shareholding, rising to 13.7% after the second tranche. Consort Medical will have a Board seat at Precision Ocular.
Jon Glenn, Chief Executive Officer of Consort Medical, commented: "This is an exciting new partnership which will draw on the skills and expertise of both Consort companies, Bespak and Aesica, and is an important demonstration of the value of our recently announced single solution for device and drug combinations.
Further it extends our competencies into the ocular therapeutic area in line with our stated strategy. Consort Medical is at the leading edge of innovation and our participation in Precision Ocular's equity financing once again highlights our commitment to investing in companies that are at the forefront of the development of new treatments, new markets and new opportunities."
Tom Cavanagh, Chief Executive Officer at Precision Ocular, added: "We are pleased to have Bespak as our development and manufacturing partner: this collaboration marks an important step in the commercial development of Precision Ocular. A significant attraction for us is Consort Medical's ability to offer Precision Ocular a one stop shop for development and eventual commercial manufacture of the final filled, finished and packaged product."