Austrianova Biomanufacturing, a biotech group backed by Limerick-based pharmacist Gerard Ryan, has engaged IBI Corporate Finance to raise €20 million to help fund the development of a cancer drug.
The Vienna-based company plans to use the funds to complete phase three trials for its Novacaps drug, which it hopes to use in the treatment for pancreatic cancer. Mr Ryan is believed to own about 35 per cent of Austrianova, having made a "multimillion euro" investment in the company earlier this year.
The pharma group has received EMEA Orphan Drug designation for the use of Novacaps in connection with the disease. It expects to commence phase three trials early in 2008 and it could also begin research work for the application of Novacaps in the treatment of liver cancer at some stage next year.
In late 2001, Mr Ryan (46) sold a chain of eight pharmacies in Limerick, Cork and Tipperary to Celesio, a German multinational that traded at that time as Gehe.
The pharmacy group employed about 100 staff at the time of the sale.
This was shortly after Celesio had entered the Irish market through its acquisition of Crowley's Pharmacies. It subsequently acquired the Unicare chain of chemists for €110 million.
The sum paid by Celesio to Mr Ryan was never disclosed, but reports at the time suggested it was sold for about €19 million. The deal was completed only a short time before the Government opened up the pharmacy market.
The Ryan Group is a major shareholder in Firecrest Clinical, a Limerick-based company providing information technology-based clinical trial solutions to the pharma industry.
Founded four years ago, Firecrest has contracts with six of the world's 10 biggest pharma groups. It employs 50 staff here.
Austrianova employs 36 full-time staff and also has a production facility in Frankfurt. To date, it has raised more than €30 million from domestic and international investors.
Austrianova's other investors include Omni Technology Invest and AT Treuhand. Mr Ryan is believed to be the driving force behind the company. The biotech company was founded in 2001 as a spin-off from the university of veterinary medicine in Vienna, where it is still based.
