Man behind Dolly the sheep moves to new pastures as CEO of Aquapharm

SIMON Best, the man who led the commercialisation of the technology behind Dolly the sheep, will today be named as chief executive of Oban-based Aquapharm, which turns chemicals from under the sea into medicines.

Aquapharm has raised 4.2 million from its existing investors, including Dutch outfit Aescap Venture, Tate & Lyle Ventures, Highlands & Islands Enterprise and Nesta.

Best – whose previous biotech company, Ardana, fell into administration and was de-listed from the stock exchange in 2008 – told The Scotsman that he was attracted to Aquapharm due to its ability to generate cash.

He said the company's existing partnership with cosmetics company Croda – and deals in the food sector, which he hopes to announce shortly – will produce cash to help fund longer-term drug development work.

Best said: "The lesson I learned from biotech companies like Ardana is 'Don't run out of cash'."

He added: "Aquapharm has done well to raise even a relatively modest sum like 4.2m in the current environment and I think that is testament to its potential.

"I have been impressed by the long-term view of investors, particularly Aescap. While many venture capitalists are demanding returns on their investments within two years, these investors are in it for the longer term."

Best said he would not rule out floating Aquapharm but highlighted that London's Alternative Investment Market (Aim) had "not been kind" to life science companies and that a trade sale or a merger or acquisition deal was more likely to be the exit route for investors in three to five years.

He added that his previous experience in the food industry will help Aquapharm to develop ingredients and generate cash to fund further projects.

His appointment will allow Andrew Mearns Spragg, Aquapharm's founder and chief executive, to become chief technology officer and concentrate on the company's science side.

Mearns Spragg founded Aquapharm in 2000 and went on to secure some 5.25m in three funding rounds. The company moved to the European Centre for Marine Biotechnology in Oban in 2004. It has produced biological agents from more than 7,250 marine micro-organisms, including bacteria and fungi.

Some of the latest funding will be used to produce a library of the seabed compounds, which will help the company to speed up the development of ingredients for new drugs.

In December, the company appointed Lloyd Payne as research director to accelerate the library's development. Aquapharm said its core focus was to develop antibiotics for infections such as MRSA. Other products under development include biological catalysts and anti-inflammatory drugs.