News blog

Evocutis / Venn Life Sciences

• BY: Andrew Hore |
• POSTED: 26/02/2014 |

Dermatology company Evocutis is selling its intellectual property to Venn Life Sciences and becoming a shell.

Shares in Evocutis fell 0.05p to 0.25p, which values the shell at £437,000. The focus of the shell will be businesses commercialising intellectual property. Evocutis has enough cash to keep it going until it gets shareholder approval for the proposals but it will have to raise more cash to carry on trading.

Clinical research organisation Venn is paying £210,000 in shares for the rights to skin substitute Labskin and other related IP. Evocutis will also receive a royalty of 7.5% on gross sales of Labskin for three years from acquisition and a royalty of 25% on sale of out-licence agreements for anti acne compound SYN1113, which will be Venn’s first licensable technology. Potential licensees have been identified.

Venn believes it can use Labskin for cosmetics testing which can no longer be done on animals.

Shares in Venn are trading at 23.5p.

Download the latest AIM Journal from http://wwww.hubinvest.com/AIMPDFFebruary2014_53.pdf