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New funding to support global fight against C. difficile

MBM Commercial recently assisted with Archangels’ investment in MGB Biopharma to support the global fight against C. difficile.

A novel anti-bacterial agent which has been developed in Scotland by MGB Biopharma (MGB) for the treatment of Clostridium difficile infections, is to enter Phase II clinical trials following a newly-completed £1.3m fund raise from existing and new investors, supplementing a £2.7m grant awarded earlier this year by Innovate UK. 

MGB’s lead drug, MGB-BP-3 was invented at the University of Strathclyde, Glasgow, and will now be tested in patients for the first time in the fight against Clostridium difficile-associated disease (CDAD). MGB-BP-3 is rapidly bactericidal against all strains (including hypervirulent strains) of Clostridium difficile, the bacterium responsible for the most cases of hospital-acquired infection in developed countries. MGB-BP-3 is seen as having the potential to improve global cure rates and become a new Gold Standard for the treatment of this debilitating and deadly disease.

The Phase II trial for MGB-BP-3 is expected to involve 30 patients, each of whom has been diagnosed with CDAD and will evaluate safety and tolerability, efficacy and in particular look for improvement in global (or sustained) cure rates.

The £1.3m funding round was led by Edinburgh-based Archangels, with co-funding from the Scottish Investment Bank - the investment arm of Scotland’s enterprise agencies, Barwell PLC and Melrose-based Tri Capital, and introduced crowdfunding investor, Syndicate Room, to the shareholder register for the first time.

MBM Commercial acted for Archangels, Tri Capital and Barwell PLC, providing technical support on the investment documentation, process and transaction management. Dr Sarah Hardy, Chief Investment Officer at Archangels commented:

“The MBM commercial team have provided continued support for Archangels and guided us through our latest investment in MGB Biopharma.  MBM’s collaborative approach helped to bring multiple parties together during this transaction and resulted in a successful outcome that enables MGB Biopharma to progress to the next stage in its development.”

MBM Commercial are proud to have supported this investment, Alexander Lamley, Senior Associate at MBM said:

“MBM has been fortunate to work alongside Archangels on a number of deals and this latest follow-on investment into MGB Biopharma is a great example of the exciting deals Archangels continue to lead in and which MBM Commercial are able to assist with. This particular round saw the addition of crowdfundfunding platform, Syndicate Room, which added a level of complexity and challenge to the documentation required for this deal but one we were glad to rise to, working with the adviser teams at the various other investing parties. We look forward to continuing our support of Archangel and its investment in to MGB Biopharma.”

Dr Miroslav Ravic, CEO and CMO of MGB Biopharma, said:

MGB Biopharma now has the funds with which to initiate our Phase IIa study in patients diagnosed with C. difficile Associated Disease (CDAD). We are already witnessing renewed interest in our new anti-bacterial agent and its trial in key medical centres in North America where CDAD is particularly prevalent. This offers opportunities both to progress the study rapidly and to attract increased attention to the results for this important trial.

Dr Sarah Hardy, Chief Investment Officer at Archangels, said: 

“What MGB Biopharma is doing is extremely important in the global fight against C. difficile infections. We are proud to continue our support for the business and to facilitate further investment from our co-investors while introducing Syndicate Room to the business.”

Kerry Sharp, Director of the Scottish Investment Bank, said: “We’ve invested in MGB since its creation and it’s fantastic to see the Phase II clinical trial start, which should demonstrate the potential of this anti-bacterial agent in saving lives across the globe.

Tom Britton of SyndicateRoom, who have invested in MGB Biopharma for the first time, said: “With antimicrobial resistance one the greatest challenges faced by society today, this new structural class of antibiotics could one day be saving millions of lives. We’re delighted to co-invest in MGB Biopharma alongside Archangels and have huge hope for this upcoming Phase IIa study and the compound Dr Ravic is developing.”

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