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29.03.12

New fund to develop cancer drugs

Cancer Research Technology (CRT) and the European Investment Fund (EIF) have joined together to create a £50m investment fund to bridge the gap between cancer drug discovery and early development.

The fund is being launched with £25m, with the potential to double this amount. The money will help run Phase II clinical trials for new drugs. At least two-thirds of the fund will used to develop discoveries made by Cancer ResearchUKscientists.

Dr Keith Blundy, CEO of Cancer Research Technology, said: “The creation of this landmark fund addresses the problem of funding the development gap which is restraining cancer drug development in theUK.

“The gap has appeared because investment from industry has moved away from early stage discovery and there’s less funding for small biotechnology firms who previously helped bridge the gap between academia and pharmaceutical companies.

“This important investment means we can take forward the most innovative approaches using our in-house drug discovery and development capabilities, to progress promising treatments from the lab all the way to clinical trials, translating our world-class scientific research into new treatments more quickly.”

Richard Pelly, EIF chief executive, said: “This investment targets a stage of the investment spectrum often neglected by the market. The CRT Pioneer Fund will be capital efficient and primarily follow a licensing model rather than creating companies.”

Minister for universities and science, David Willetts, said: “In our Strategy for UK Life Sciences we set out ambitious plans to build on the success of the industry by fostering collaboration between our excellent research base and businesses. This initiative from Cancer Research Technology and the European Investment Fund will complement this work extremely well, helping to take our world-leading science from the laboratory through to benefits for patients and the economy.”

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