June XX, 2012 £985,000 investment in cervical cancer

June XX, 2012
£985,000 investment in cervical cancer diagnostics device
A PIONEERING company which has developed a technology to speed up and
improve cervical cancer diagnosis has received £985,000 in investment funding.
Zilico Limited has received a £750,000 investment from The North West Fund for
Biomedical, managed by SPARK Impact and a further £235,000 from new and
existing investors, including Fusion IP plc.
The North West Fund for Biomedical is a sub-fund of the £185m evergreen North
West Fund that is jointly financed by the European Regional Development Fund
and the European Investment Bank.
Zilico Limited, which was originally spun out from the University of Sheffield and
Sheffield Teaching Hospitals NHS Foundation Trust, will be headquartered in
Manchester.
Cervical cancer affects around 500,000 women worldwide each year and is
responsible for 300,000 deaths. Under current screening practices in the UK, a
woman will have a Pap smear or LBC test every three or five years. If the test is
positive, she will be referred to a colposcopy clinic for a detailed cervical
examination.
Zilico is developing a new system with two applications to provide ‘real time’
results for women undergoing both these types of test, removing several weeks
of waiting for a diagnosis.
The system consists of a portable hand-held device, a single use disposable
sleeve and docking station. This system is safe, painless, and accurate.
The technology used, called electrical impedance spectroscopy, can measure the
resistivity of cells and so detects changes as cells progress from normal to
precancerous and then to cancerous.
The first application of the device is positioned within the referral population, and
could help in reducing the number of biopsies taken. The second application,
which is under development, will be positioned as a screening device and will
help to reduce the subjectivity and time-taken with current tests.
The referral application completed a pivotal European trial of 400 women in 2011
across three hospitals in the UK and Ireland. The company has been
disseminating these results at key scientific meetings across the world.
Chief executive of Zilico, which was formed in 2006, Sameer Kothari, said: “It is
the strength of the Zilico proposition including the recent pivotal trial data that has
enabled us to secure this significant investment.”
“I am particularly pleased to bring on board SPARK Impact as an experienced
healthcare investor.”
Zilico will use the investment to complete the manufacture of commercial devices
and to establish its route to market for EU and other territories.
Dr Penny Attridge, senior investment director at SPARK Impact and manager of
The North West Fund for Biomedical, said: “Cervical cancer is the second most
common cancer in women under 35 and we feel this technology really has the
potential to become a successful diagnostic tool for this cruel disease.”
Zilico Limited is the 18th investment for The North West Fund for Biomedical to
date.
ENDS
Media contacts
SPARK Impact
Louise Clancy, [email protected], 0151 705 3416
The North West Fund
Chris Hopper or Alison Ziobro @ MC2 – 0161 236 1352
Zilico Limited
Sameer Kothari, [email protected], 0114 222 4580
Notes to editors
The North West Fund for Biomedical and SPARK Impact:
The £25m North West Fund for Biomedical, which is managed by SPARK
Impact, is part of the £185m evergreen fund provided by the European
Investment Bank (EIB) and European Regional Development Fund (ERDF), to
supply debt and equity funding to small and medium sized enterprises in the
North West of England.
The North West Fund for Biomedical, which was launched in February 2011, is
accessible to a broad range of companies including those developing
pharmaceuticals, new diagnostics and medical devices, and those working in the
fields of clinical research, contract manufacturing and analytical services. It is
open to companies based in, or prepared to relocate to, the North West of
England, with 40% of the fund to be invested on Merseyside. It is expected that
the fund will invest in over 50 businesses. It has already received over 100
applications and made six investments to date. For more information about the
fund and how to apply please visit www.thenorthwestfund.co.uk
The North West Fund
The North West Fund is a £185m evergreen investment fund established to
provide debt and equity funding (from £50,000 to £2 million) to small and medium
sized enterprises based in, or relocating to, the North West of England. The
North West Fund addresses an identified gap in the lending, venture capital and
private equity markets. It is one of the largest public sector funds of its kind in
Europe and the largest in the UK.
The North West Fund is financed by the European Regional Development Fund
(ERDF) and the European Investment Bank (EIB) under the European
Commission's Joint European Resources for Micro to Medium Enterprises
Initiative – otherwise known as the JEREMIE programme.
The North West Fund is the umbrella name for the six funds that are available to
businesses in the form of debt, equity and quasi-equity. These funds are
managed by six fund managers under contract with North West Business
Finance Limited (NWBF), which has been established to oversee the delivery of
The North West Fund. An initial £170m of The North West Fund has been
allocated to the six fund managers, as outlined below:
Fund manager
Name of fund
Fund committed
YFM Equity Partners
Development Capital
£45m
FW Capital Ltd
Business Loan
£35m
Enterprise Ventures Ltd
Venture Capital
£30m
Spark Impact Ltd
Biomedical
£25m
CT Investment Partners LLP
Energy & Environmental
£20m
AXM Venture Capital Ltd
Digital & Creative
£15m
Total
£170m
Each fund manager has a mandate to invest their allocation into the specific
product or sector they manage, until 31st December 2015. The remaining £15m
will be available for further allocation and investment through to the end of 2015.
Such further allocations will be made as investment needs become more
apparent. NWBF is a private, not for profit company, established to oversee the
delivery of The North West Fund.
Between December 2010 and May 2012 The North West Fund has invested over
£25m in more than 95 businesses. Further funding has also been earmarked to
support these businesses as they grow and many more new investments are
planned over 2012 and the three years ahead to 2015.
For further information please visit www.thenorthwestfund.co.uk
European structure, JEREMIE
The JEREMIE initiative offers EU Member States, through their national or
regional Managing Authorities, the opportunity to use part of their European
Union (EU) Structural Funds to finance small and medium-sized enterprises by
means of equity, loans or guarantees, through a revolving umbrella fund. The
initiative was developed by the European Commission and the European
Investment Fund, which is part of the European Investment Bank Group.
JEREMIE provides for a range of debt and equity financial tools to obtain the
most appropriate allocation of funds according to national, regional or local
requirements.
ERDF in the Northwest
ERDF is making a real difference to people and businesses in the North West.
With €755 million to invest between 2007 and 2013, ERDF is enhancing the
competitiveness of the region’s economy by supporting growth in enterprise and
employment.
ERDF in the North West is managed by the Department for Communities and
Local Government – for further information visit www.communities.gov.uk/erdf.
EIB
The EIB is the European Union’s long-term financing institution and, provides
long-term finance for capital projects promoting European economic objectives.
The EIB made its first loan in the UK in 1973 and since then has lent around
€75bn for investment in the UK economy. In the years from 2004 to 2009, the
EIB financed investment in the UK totalling some € 23.5bn - GBP 17.5 billion.
Zilico Limited
Zilico Limited is a company developing the next generation of cancer diagnostics
with a product line which will provide real-time diagnostics for cervical cancer.
Two product applications are under development: the first for the referral market
and the second for the screening market. Clinical data on 1000 women has
demonstrated superior performance over existing diagnostic procedures.
Zilico has developed Electrical Impedance Spectroscopy (EIS), an objective
scientifically-proven method to differentiate between normal, pre cancerous and
cancerous cells. This provides a real-time diagnosis that removes subjectivity at
both screening and referral, and potentially avoids the need for a biopsy. Zilico’s
patented technology, which has been discussed in learned peer-reviewed
journals, exploits the different electrical resistivity of normal, pre-cancerous and
cancerous cells.
Since incorporation in 2006, Zilico has focused on developing a research- based instrument into a device appropriate for commercial manufacture and
routine use by medical practitioners. Both Zilico product applications consist of a
handheld device and a base unit together with a single-use disposable sleeve for
each test.
The European multi-centre trial was designed to demonstrate the performance of
its portable diagnostic device within a cervical cancer screening programme. The
device is positioned as an adjunct to colposcopy to help accurately identify sites
for biopsy. The trial was carried out at three centres with international reputations
in colposcopy and cervical cancer. A total of over 400 women were recruited into
the trial. Zilico is disseminating the results and will use the data from this trial to
obtain a CE Mark for the use of the device as an adjunct to colposcopy and
expects to launch the product early in 2013.

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