The University of Glasgow has announced the creation of a new biotechnology company, Grannus BioSciences Limited.

The Company has been formed through collaboration between the University and US-based Pharmetix Corporation which has provided seed funding. Further funding has been supplied by the Synergy Fund, which is managed by Scottish Equity Partners on behalf of the universities of Glasgow and Strathclyde

Grannus is the Celtic god of healing and this appropriate name has been chosen for this latest spinout venture whose research has the potential to develop new classes of anti-inflammatory and anti-viral treatments for psoriasis as well as other inflammatory-related diseases, including rheumatoid arthritis and emphysema.

Professor Iain McInnes of the University of Glasgow, one of the company's founders, explained,

" Over 10 million people throughout the world suffer from psoriasis. I work on a daily basis with patients who suffer from this and other inflammatory diseases including rheumatoid arthritis so I see the misery caused by these conditions first-hand".

"The treatments that we currently use are only partly effective and are often associated with side effects that make them difficult to take especially in the long term. The treatments that Grannus is developing have the potential to revolutionise inflammation therapy, providing sufferers with more effective alternatives that don't have these serious side effects."

Grannus BioSciences will begin operations in the University's incubator space on campus and plans to create a portfolio of innovative therapeutics for inflammation and viral diseases. It will focus on new treatments capable of reversing the immune system damage caused by inflammation.

These will be distinct from existing treatments available which, up until now, have simply served to halt the inflammatory process without addressing the repair of tissue damage. Grannus plans to test its lead product Granaseﾩ in clinical trials for psoriasis within 1 to 2 years.

Dr Robin Stevenson , one of the other scientific founders, added, "As a respiratory physician, I am particularly keen to look at the effect of the treatments being developed by Grannus in inflammatory chest diseases such as chronic obstructive pulmonary disease."

Dr Liz McLaughlin Taylor, Senior Partner of Pharmetix and one of the executives who will form the Grannus BioSciences management team commented,

"The product has enormous business potential. The size of the market for psoriasis treatments is currently estimated to be over $600 million while the market for treatments for arthritis and respiratory conditions runs into billions of dollars,"

Dr McLaughlin Taylor is also an alumna of the University of Glasgow . She added: "The wealth of technology and resources within Glasgow University and Scotland in general are substantial. It is particularly exciting and rewarding for me to work with my alma mater and help build the biotechnology industry in Scotland after working in the biopharmaceutical sector in the United States for the last 15 years."

Mel Anderson, Business Development Manager at the University of Glasgow Research and Enterprise, added, "

"Grannus BioSciences is a further example of the ongoing commitment of the University of Glasgow to forge partnerships within the private sector to enhance research opportunities and facilitate groundbreaking results which will have a direct patient benefits."

"We are delighted to be working with one of our alumni to form Grannus. Pharmetix has brought a strong management team to a promising technology platform. This venture has the potential to create a range of new products around which a significant Scottish pharmaceutical company could be grown."

Media Relations Office (media@gla.ac.uk)

The new treatments will be based around the development of proprietary technology surrounding thymosin beta 4 sulphoxide, a naturally occurring inhibitor of neutrophils, which play an important role in the tissue damage caused by chronic inflammation in psoriasis, rheumatoid arthritis and other conditions.

Synergy is a University Challenge Fund invested in by the DTI?s Office of Science and Technology and the universities of Glasgow and Strathclyde, and managed by Scottish Equity Partners. Grannus is the 18th investment by Synergy since it was launched in 2000.

For further information, contact:

For Grannus BioSciences

Dr Liz McLaughlin Taylor , Email: taylor@grannusbiosciences.com

Tel: 001 949 361 6941, www.grannusbiosciences.com

For University of Glasgow

Mel Anderson (Research and Enterprise)

Tel: 0141 330 4266 email melville.anderson@enterprise.gla.ac.uk

Judith Hodgson (Press Office)

Tel: 0141 330 3535 email j.hodgson@admin.gla.ac.uk

www.gla.ac.uk

For Scottish Equity Partners/Synergy Fund

Lara Bayley, Tel: 0141 273 4000, Email: lara.bayley@sep.co.uk

www.sep.co.uk

First published: 12 February 2004