BIOVENTURES INVESTS IN LEADING BIOTECH COMPANY
Johannesburg - Tuesday April 23, 2002
Bioventures, South Africa's first biotechnology (biotech) venture capital fund,
has made its first investment in a company involved in the development of novel
drug delivery systems.
Bioventures is investing R12-million in Shimoda Biotech (Pty) Limited, a leading
South African biotech company. Shimoda specialises in innovative drug delivery
systems that allow for the more efficient delivery of pharmaceutical drugs
within the body, for example by facilitating better absorption. The company is
also involved in identifying novel targets for new drugs and developing the
drugs themselves.
Bioventures, which was launched a year ago, is an R80-million fund jointly
managed by two of the country's most innovative investment groups - Gensec Bank
and Real Africa Holdings. Manager of the fund Dr Heather Sherwin explained that
Bioventures had examined a number of interesting investment opportunities during
the past year. "In assessing opportunities we have to satisfy ourselves and our
investors that the company met our stringent investment criteria. Shimoda,
which is one of South Africa's most exciting biotech companies, certainly does
that and we believe that the company has great potential."
Another of Shimoda's attractions for Bioventures is the fact that its management
team combines world class scientific skills with experienced business management
skills. "In addition," Dr Sherwin said, "Shimoda has strong working
relationships with a number of top scientists in South African universities."
She went on to say that Shimoda has just signed its first licensing agreement
with a US pharmaceutical company. "Shimoda has a substantial product pipeline
and some of its products have near term cash generating abilities. This is
unusual in a young biotech company as the drug development cycle tends to be
long."
Shimoda chief executive Dr Lawrence Penkler (previously head of Innovative
Research at SA Druggists) said that Bioventures was Shimoda's preferred
financing partner as the venture capital fund understood its technology and
business model. "With their industry specific contacts both locally and
internationally, the Bioventures team can really add value. We anticipate that
with Bioventures behind us we will be able to take our business to the next
level."
Shimoda was founded by Greg Gilbert in 1995 and its main laboratories are
situated in the heart of the Knysna forest near PlettenbergBay, a genetically
resource rich area. Seed financing for the company was provided by angel
investors and the JSE-listed Peregrine financial services group.