Douglas joins forces with university spin-out for drug project

ABERDEEN University is joining forces with Derek Douglas’ corporate finance house Adam Smith Limited (ASL) to raise £1.5 million for a drug development spin-out company.

Signal Pharma will use research from the university to come up with treatments for breast cancer, chronic pain, diabetes and heart failure.

Douglas told The Scotsman he was beginning the search for funding by targeting high net-worth individuals in Aberdeen, although he declined to name any of the potential investors.

“The response has been good,” said Douglas, who has raised £100 million for technology companies through ASL. “Several investors have shown interest and have asked to see the company’s business plan.

“There are so many high net-worth individuals in Aberdeen now that I would hope to be able to raise the £1.5m.”

Douglas has been involved with technology companies for 20 years but Signal Pharma is the first drug development business with which his firm has worked.

He became involved with the project after funding scientific research at Aberdeen University.

“They asked me to take a look at Signal Pharma and I liked what I saw,” Douglas said. “I’m very excited. This is a good team and I think they will be able to deliver for us.”

Douglas’ recent funding successes have included raising £2m from Scottish Enterprise and Dutch private equity firm SET Venture Partners for Ngentec, a spin out from Edinburgh University that is developing generators for wind turbines.

Other backers of Ngentec include David Brown, the gears business owned by Jim McColl’s Clyde Blowers Group.

Douglas also helped to found optical device maker Kymata, which was sold to telecommunications giant Alcatel in 2001.

Ruth Ross, professor of molecular pharmacology, and medicinal chemist Iain Greig are the founding directors of Signal Pharma. They will receive assistance from Michael Wyllie, founder and director at Global Pharma Consulting, and from university colleagues Professor Michael Frenneaux and Professor Matteo Zanda.

Greig said: “It is particularly satisfying to see ideas we have worked on reaching the next stage of the development process, which we hope will eventually lead to new drugs that give real benefits to the patients, saving lives and reducing suffering.”

Ross added: “The creation of Signal Pharma is a great opportunity to generate both medical and economic benefits.”