Fusion IP high on drug success

Fusion IP, a company which attempts to make money from university research, has rocketed 35% this morning after encouraging results on a drugs trial in which it has a significant interest.

Fusion has a 43.1% shareholding in Diurnal, a Cardiff-based firm looking to help patients suffering from cortisol deficiencies. Diurnal is attempting to develop Chronocort, a modified release therapy that delivers hydrocortisone in a manner that mimics the body's normal circadian rhythm (the body's natural 24-hour hormone cycle).

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The trial involved the administration to healthy volunteers of different formulations of Chronocort followed by blood measurements of hydrocortisone.

The company hopes to move into Phase II trials during 2012, with an estimated Phase II completion date of mid-2013.

Chronocort has already received two "Orphan Drug" designations from the European Medicines Agency, which affords10 years of market exclusivity in Europe.

Peter Grant, Operations Director for Fusion, commented: "it is hard to estimate what the value will be at the end of Phase 2, (however) it is notable there has been acquisition activity involving a similar drug in a comparable indication which attracted high value."

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