Target Information

Biotherapy Services Limited (BTS) is a leading pharmaceutical biotech company founded in 2013 and based in Windsor. Co-founded by Janet Hadfield and Kambiz Golchin, BTS specializes in autologous regenerative techniques, developing innovative treatments for slow-healing and complex wounds. The company’s flagship treatment, RAPIDTM Biodynamic Haematogel, showcases remarkable efficacy in healing severe diabetic foot ulcers (DFUs), having demonstrated success in treating 86.7% of high-risk patients without the need for amputation. The UK regulatory body, the MHRA, has recently reclassified this treatment from a medical device to a medicinal product, necessitating comprehensive clinical trials to validate its safety and efficacy as it seeks market authorization.

Industry Overview in the UK

The prevalence of diabetes in the UK is estimated at 3.7 million individuals, with one in four likely to experience a DFU during their lifetime. This leads to approximately 169,000 DFU treatments annually through the NHS. Chronic wounds not resolving within 12 weeks can escalate into serious health issues, including up to 11,000 amputations each year and substantial financial burdens, costing the NHS about £935 million in 2017 alone. The impact of diabetes on the NHS budget is significant, accounting for 10%, with projections indicating an increase as the number of diabetes patients is expected to rise to 5.1 million by 2025.

Addressing DFUs is critical, considering the immense quality-of-life challenges faced by affected individuals. The launch of new treatments is essential for alleviating the pressure on the NHS and enhancing patient care. BTS's RAPIDTM gel addresses a crucial medical need and signifies a potential breakthrough in the therapy for chronic wounds. The company has recently received an Innovation Passport from UK regulating bodies, recognizing the high demand for effective treatments for DFUs and validating early-phase data suggesting the therapeutic benefits of RAPIDTM.

Moreover, BTS is expanding its clinical applications to address other types of non-healing wounds, including pressure ulcers, post-operative wounds, and wounds associated with palliative care. This indication represents a significant market opportunity, estimated to exceed £5.6 billion in the UK. The broader implications of this technology could eventually encompass various fields, including hair regeneration, scar minimization, and infection prevention in high-risk surgical procedures.

Rationale Behind the Deal

The recent follow-on investment of £1.5 million by Foresight Group into Biotherapy Services aims to support the clinical development of the RAPIDTM Gel as it progresses through pivotal phase 2b/3 clinical trials. The investment reflects a commitment to advancing an innovative treatment that addresses a major healthcare challenge posed by DFUs. With compelling early-phase data and the Innovation Passport designation, this funding is expected to facilitate BTS's journey toward offering a new treatment option for a debilitating condition that incurs substantial costs for both patients and the NHS.

Information about the Investor

Foresight Group is an award-winning private equity and infrastructure investment manager with extensive experience in supporting UK SMEs throughout various growth stages. With over £7 billion in assets under management, Foresight focuses on a diverse range of sectors, ensuring a tailored approach to investment. The firm emphasizes collaboration with entrepreneurs and management teams to drive growth and deliver robust returns for its investors, maintained over more than 35 years of operation.

Foresight has a strong track record of investing and nurturing companies in the healthcare sector specifically, and it has gained recognition for its strategic contributions to innovative firms. With regional offices across the UK and a commitment to impactful investments, Foresight's support can help BTS realize its ambitious vision for improving patient outcomes through pioneering technologies.

View of Dealert

In my expert opinion, the investment in Biotherapy Services Ltd through Foresight Group appears to be a promising opportunity with a strong potential for substantial returns. Given the high prevalence of diabetes and the increasing demand for effective DFU treatments, BTS is positioned well within a significant and growing market. The company’s proprietary technology has already shown notable efficacy, reducing the risk of amputations, which not only alleviates patient suffering but also addresses a pressing public health concern.

The awarding of the Innovation Passport is a significant endorsement of BTS's technology, highlighting the clinical need for effective solutions in the wound-care space. This status may expedite the clinical trial process and enhance the company's visibility among stakeholders, including potential partners and buyers within the healthcare ecosystem. Furthermore, the ability to extend their technology into other areas of wound care broadens their potential market, diversifying revenue streams and enhancing long-term sustainability.

While the competitive landscape for medical treatments is challenging, the unique efficacy of RAPIDTM Gel and the growing focus on regenerative medicine put BTS in a competitive position. As the healthcare industry increasingly prioritizes innovative therapies that improve patient quality of life and reduce overall healthcare costs, BTS's offerings are aligned with market demands. This investment not only supports the clinical development plan but also aligns well with Foresight's strategic focus on impactful healthcare solutions.

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