A
company founded by Oxford University Chemists has doubled in value since last
year and is now estimated to be worth £58 million.The company, VaSTox Plc, was floated on
the London Stock Exchange in October 2004 valued at £30 million. earlier this
month the company published an interim financial report showing a turnover of
£201,000, a fourfold increase from last year. One of the company’s founders
described its success as “remarkable.” The company was founded in 2003 by
Professors Kay Davies of Hertford, Edith Sim of St Peter’s, Graham Richards of
Brasenose and Steve of new College, who invested £100,000 in the company. VASTox is involved in developing
treatments for diseases such as muscular dystrophy and tuberculosis, using a
process known as chemical genomics. Professor Steve explained, “By looking at
the unique features of fruit fly larvae and zebra fish eggs, we are able to
predict the properties of organic chemicals.” This information can then be related to
humans. According to the company’s website this leads to the production of much
safer medicines. As a ‘spin-out’ company, the University holds a stake in
VaSTox allowing it to share in the company’s massive success.In January 2005, VaSTox moved out of
University facilities to a new site at Milton Park a few miles south of Oxford but Professor
stressed his priority, “still lay with the University, managing one of the
largest research departments and running a full teaching programme.” A professional
management team handles the day-to-day running of the company, allowing
academics to continue work in the University. described the team as “highly
competent”, and highlighted their role in the company’s achievements. He also
stressed that none of the academics were involved for personal profit, allowing
more money to be reinvested in the company. VASTox is not the first spin-out company
with which had been involved. In 1992 he founded the similarly successful Oxford asymmetry
Limited. That company was also floated on the stock exchange and sold for £316
million in 2000.Professor admitted that he had made
considerable personal gain from Oxford asymmetry’s success but added that a
large part of the company’s profits were used to fund chemistry studentships in
the University. He believes that successful spin-out companies can only be
beneficial for the University. Since 1998, forty companies have been spun
out from University departments and their estimated value is over £2 billion.
The companies are overseen by Isis Innovation Ltd, a subsidiary of the
University.ARCHIVE: 4th week MT 2005
Commercial success for chemists’ spin off
