BIO YOGA: Flexibility vital

One advantage of a trip to BIO is that it stimulates me to review what I have seen and experienced at the meeting and how it reflects or differs from my personal view of the Biotech sector. Those of you that know me will not be surprised to hear that I will start from my conclusion!  Over the last few years I have struggled to understand how the sector has changed since the economic recession. My thoughts are that the sector is still patchy and fragmented. Overall there is still a lack of investment especially in the UK.  However there are several examples of companies achieving significant investment.  My experience at BIO is that the USA investment environment is making a stronger recovery than Europe and the UK.

My first observation is that there is a clear interest in project based investment. Certainly whilst I was out representing Domainex I spoke to several organisations that would clearly invest in our lead programme and take it through to POC. These organisations varied from classical VC groups and Institutional investor groups to an emerging class of development companies who will use their expertise on risk share collaborations.

My second observation is that at last there are real signs that pharma are looking earlier in the drug discovery process for deals – and even more important is that they are being realistic about what an early project looks like. Again Domainex has attracted considerable interest in our pre-clinical program on TBK1 and IKK epsilon. What is critical to do early deals is that the target must be attractive and novel – you’re not going to get that early deal with another BRAF inhibitor!!

Finally, and one close to my heart, is that there is increasing interest in companies offering services and drug discovery. To be fair this model is not new. Companies such as Argenta successfully operated this model. Indeed most biotech companies do something to generate value out of their technologies or expertise. Sometimes it’s dressed up as technology access, sometimes a collaborative project or, as in the case of Domainex, services- sometimes in the form of risk share.

So what do these observations say about how the sector is changing and performing? As I said earlier in my conclusions I still believe it’s too early to say. My suspicion is that we are entering into a period, which could stretch over several years, of flexibility.  Flexibility by pharma in doing early deals and biotech being realistic in deal structures around these deals, flexible funding with some biotechs following the more traditional model of investment of invest and spend, others looking at taking a variety of funding from smaller investor groups, drawing in income on their technologies, adding those all-important none-diluting Government grants and maybe using Special Purpose Vehicles to attract investment into single projects to take them to POC. Whatever happens we’re in for an ‘interesting time’- did I mention China? That’s for next time.

Written by
Eddy Littler, CEO, Domainex Ltd, May 2013

The One Nucleus blog is written by individuals and is not necessarily a reflection of the views held by One Nucleus.

Posted in May 2013 | Leave a comment

One Nucleus at BIO 2013 – Doing what, where, why and with whom

What is One Nucleus doing at BIO 2013?

Bio Executive Dinner, Sunday 21 April 2013, Hyatt Regency Chicago (Fully subscribed but read on)

We are holding a dinner in collaboration with Biocat, BIA and our two California MOU partners BayBio and BIOCOM. Hosted by AstraZeneca, there is nothing too formal as far as agenda goes, but a chance ahead of the main show to mingle with biotech execs from other geographical regions and learn peer-to-peer about what is going on elsewhere whilst extending your own network of contacts.

We are fortunate to have an array of sponsors in addition to the partners above in the shape of World Business Chicago, Prosonix, Niels Clauson-Kaas, Imanova and Scrip Intelligence who is our headline sponsor. On this note, Christopher Bowe of Scrip Intelligence will be speaking after dinner. If you would like to speak with Christopher during BIO and wish to make direct contact, he can be reached at Christopher.Bowe@informausa.com

Whilst the dinner is fully subscribed there IS the opportunity to join us to network. Whilst the dinner is due to run from 18.45 – 21.30hrs on Sunday, I have suggested to our guests that they may wish to network before and after the dinner in the DaddyO’s Irish Pub within the hotel venue where there is a cash bar and they do serve food. So even if you aren’t attending the dinner but at a loose end on Sunday evening, perhaps come along to join the networking opportunity. Looking forward to seeing you there.

Bio Executive Breakfast Debate, Monday 22 April 2013, Hyatt Regency Chicago (Fully subscribed)

This is the second annual debate One Nucleus has held in collaboration with Stockholm Uppsala Life Sciences (SULS), BIOCOM and BayBio at the BIO Convention. This year we will focus on ‘The role of Open Innovation in successful global partnerships’ where we hook up again with John Carroll of Fierce Biotech who will be chairing the event. The panel members consist of Erik Forsberg (Uppsala BIO), Joseph Panetta (BIOCOM), Gail Maderis (BayBio), Steven Powell (Virttu Biologics) and Steve Bates (BIA).

We are fortunate to have sponsors in the form of Uppsala BIO, Virttu Biologics and SULS.

I shall be attending events led by others including UK Trade & Investment, Technologiepark Heidelberg GmbH and Life Sciences Queensland and will be networking furiously.

Catch up with me at BIO: What are we talking about?

I imagine BIO2013 will be like previous BIO events in the sense that I will end up in some conversations on topics I could never have predicted! Nonetheless useful – all the time gaining knowledge and contacts that I can then factor in to later One Nucleus events, introductions and activities that benefit our One Nucleus members where possible. Focus is also key at BIO. I will spend much time at BIO reinforcing the key One Nucleus messages – that we aim to support our members in maximising their global competitiveness, that we are a great platform to bring the right people together across borders (as evidenced by the dinner and breakfasts at BIO as examples) and collaborating for member benefit where appropriate.

We have two major events in 2013

ON Helix (see http://www.onhelix.com/) taking place on 9 July 2013 in Cambridge

ON Helix is our brand new translational research conference for the life science industry and academia.

A one day event aimed at informing delegates of how to turn early stages inventions and ideas into innovative health treatments (new medicines, novel biomarkers, useful medical devices or improved medical practices).

It will present the UK landscape of the business environment, funding, scientific and clinical research excellence and will be a unique knowledge-sharing environment between academia and business.
Keynote Speakers already confirmed include: Sir William Castell, Sir Mike Rawlins, Andy McMenemy and other speakers of particular note include Prof. Mike Stratton and Prof Laurence Pearl.. Sponsors include MedImmune and UK Trade & Investment.

Genesis 2013 (http://www.genesisconference.com/) 11 – 12 December 2013, London

Now in its 13th year Genesis is the most established life science conference of its type now running in the UK. Attracting 650+ delegates each year into this unique thought leadership forum in one of the World’s most accessible, dynamic and influential cities Genesis continues to evolve. Key highlights for 2013 will include:

•    Plenary Session with presentations from Dame Sally Davies, Sir Salvador Moncada, Roel Bulthuis and Mike Ward
•    4 x selected case study deal sessions led by Scrip Intelligence
•    2 x Bio-Pharma Partnering Showacse sessions
•    5 Therapeutic Area or Technology Focus thematic leadership sessions
•    1-2-1 Partnering
•    The Scrip – One Nucleus Plenary Debate
•    Pre-Conference Day hosted by the Canadian High Commission which will include the 2013 BioNewsRound Award and Welcome Reception

Who are we talking to?

I am a true believer in business being a people driven process and networks are key…. but then you may feel I am biased (ha ha).

I list below the companies and organisations that have registered one or more attendees to participate in our two BIO events detailed in this blog as a starting point, but I guess the wonder of BIO each year is that you will also meet many contacts known and unknown as part of the experience….

Abel & Imray Discuva Public Health England
Alacrita Edinburgh BioQuarter Re:Viral
Apitope Euprotec Readycell
APL FierceBiotech Roji
Archivelfarma Governor’s Office of California Roslin Foundation
AstraZeneca GP-Pharm Scrip Intelligence
BayBio Gri-Cel Selcia
BerGenBio AS Hayhurst Associates SGS North America
BIA Imanova South San Francisoco City
Biocat Innova Biosciences Stockholm Uppsala Life Sciences
BIOCOM Kymab Swiss Precision Diagnostics
Bionure London & Partners (US) Team Cailfornia
Biopharmacueticals Australia Lykera Biomed TechNation
BioWorld Today Mass Life Sciences Center The Institute of Cancer Research
British Consulate LA MediWales Tiberend Strategic Advisors, Inc
Caixa Capital Risc Niels Clauson-Kaas A/S UC San Diego
Canale Communications Norgine UKTI Boston
CantabIP One Nucleus University of West of England
Cleveland IP Oryzon Uppsala Bio
Cobra Biologics Osborne Clarke Vetter Pharma
College Hill Pinsent Masons Virdis Group
Communication Strategy Group Plasmia Biotech Virttu Biologics
Cushman & Wakefield of San Diego Polytherics W P Thompson
Datamonitor Healthcare Consulting Prosonix Withers & Rogers
World Business Chicago

Written by Tony Jones, Director of Business Development, One Nucleus

Posted in April 2013 | Leave a comment

One Nucleus at BIO 2013

Sooner than the usual June placement, the annual biotech jamboree that is the BIO Convention gets underway in Chicago, Illinois on Monday 22 April. With an anticipated 16,500 delegates, almost 30% of which will be from outside the US, 2000+ exhibitors, 25,000 1-2-1 meetings and 800+ speakers the art to success lies in the preparation as always. Planning our One Nucleus activities has been underway for some time also. This has included working with our Support Supplier, Flight Centre Business Travel (FCBT), to enable our members to get the best possible deals on the flight and hotel expenditure. Assisting a dozen of our members, FCBT estimate they have saved them a collective £7000 so a great start to our relationship with FCBT.

To support our members in making the most out of their trip to BIO, we will once again be holding an executive dinner on Sunday 21 April and a breakfast debate on the Monday 22 April, both at the Hyatt Regency Chicago Hotel. The dinner, which will be hosted by AstraZeneca, is in partnership with Biocat, our counterparts in Catalonia, BayBio and BIOCOM from California and the BIA from here in the UK. The only agenda for the evening is to enable senior executives from companies in all these clusters to mingle over dinner and learn peer-to-peer about what is going on where and with whom. A mechanism to enable our members to use this time to gain knowledge of other geographic regions and companies that they were unaware of before heading to Chicago.

The Breakfast Debate is slightly more formal with a panel debate on a topic of ‘The role of open innovation in successful global partnerships’ and we will once again be working with our collaborators Stockholm-Uppsala Life Sciences, BayBio and BIOCOM to attract a mix of biopharma executives to the meeting. The panel will be chaired by John Carroll, Editor of FierceBiotech whom we were lucky enough to have speak at our February 2013 BioWednesday with the panelists being Steven Powell (Virttu Biologics), Gail Maderis (BayBio), Steve Bates (BIA) and Eric Forsberg (UppsalaBIO).

We will be further developing our out-reach to other global clusters that is enabling us to bring to our members’ attention timely information about what is happening in other territories and making introductions to some key personnel where a member wishes to explore any of the opportunities further. One Nucleus has developed an excellent working relationship with a number of overseas groups, creating a network through which our members can engage in new markets with a helping hand. At BIO this will include attendance at a breakfast hosted by Heidelberg Technology Park where I will meet with a number of the European contacts. Furthermore, through our relationship with FlandersBIO, I have also been able to reach out to a number of our members interested in developing collaborations in Flanders and invite them to a senior executive dinner on Monday 22 April and to participate in the Belgian Cafe. Finally, we will of course, be collaborating with UK Trade & Investment (UKTI) to ensure our UK-based members travelling to BIO are kept abreast of the UKTI activities at BIO such as the Bio Executive Dinner and other networking receptions.

Written by Tony Jones, Director of Business Development, One Nucleus

Posted in March 2013 | Leave a comment

Lost in Translation?

I recently realised that although ‘translation’ and ‘translational science’ have become part of the daily lexicon of drug discoverers everywhere, the way I was using the terms differed from others. I routinely use the words to describe the whole process of moving a project (asset) forward through the drug discovery phases depicted in simple form below.

GeoffLawton

Since our community seems to have hi-jacked a commonly used word and given it a new meaning, I checked on the perceived meaning of ‘translation’ with the man in the street (well it was actually a few men and a few women in a pub).

The consensus was some form of paraphrase of the Oxford English Dictionary first meaning:

‘a written or spoken rendering of the meaning of a word or text in another language’.

However, this vox pop was in a Cambridge pub, so naturally there were a few strange people in the group! One was a mathematician and she went for the third OED meaning:

‘movement of a body from one point of space to another such that every point of the body moves in the same direction and over the same distance, without any rotation, reflection, or change in size’.

And, of course, I couldn’t escape all of the biologists so there was one who was convinced it meant:

‘the process by which a sequence of nucleotide triplets in a messenger RNA molecule gives rise to a specific sequence of amino acids during synthesis of a polypeptide or protein’.

I was the only drug discoverer present so only I came up with the equivalent of meaning number 2 in the OED:

‘the conversion of something from one form or medium into another: example; the translation of research findings into clinical practice’.

I find that pubs are usually educational, and this exercise taught me that we members of the new medicines discovery community should be careful in our use and explanation of the language, particularly when communicating with funders, policy makers, etc.

The research findings involved in our form of translation usually come from an exploration of disease pathology or genetics. From my point of view there are three major barriers to the translation of these outputs, and the resulting ideas  for disease intervention, into clinical practice:

  1. Proof of the concept that intervention in a particular biochemical process or pathway can ameliorate disease.
  2. The production of a suitable new molecular entity (NME) that can modulate the disease.
  3. Identification of a financially viable route to making the new medicine available to the patient population.

Let’s look at each of these issues:

The proof of the biochemical hypothesis is often misleadingly referred to as ‘target validation’. I try to reserve this term for the point at which the translation process is complete. A drug discovery target becomes valid only when a new medicine is generally available to patients.

Many experimental approaches are used to support the biochemical hypothesis. These include familial susceptibility to disease, identification of disease-specific mutations, and gene knock-out/knock-in studies in laboratory animals.

Some researchers attempt to use what they call ‘chemical tools’ to achieve this proof of concept. This is dangerous ground. A ‘tool’ is perceived not to be a drug candidate because it has some known liability which would prevent its development as a drug. A couple of common liabilities are insufficient on-target selectivity or an inadequate pharmacokinetic profile. In the second case the tool could indeed assist the validation process if it is biochemically selective and can be administered in a way so as to achieve effective concentrations at the proposed site of action; but in the first case, the off-target activity will always compromise the confirmation of the hypothesis. Most worryingly in terms of the finances of drug discovery, a failure to prove the concept with a ‘tool’ compound is rarely taken to show invalidation of the target. A well designed experiment could indeed invalidate the approach and would dramatically reduce the costs of drug discovery by allowing projects to be stopped at an early stage.  Advocates of the approach will usually find some excuse to continue the project; such as ‘the tool was not good enough’. In order to be a useful tool, it must be accepted to be ‘good enough’ to invalidate the target before such ‘proof of concept’ studies are initiated.

The quality of the NME is critical to its success as a medicine.

Quality covers many areas. The target product profile will determine acceptable routes of administration and frequency of dosing, and within these constraints, the molecule must be able to access the target and engage the target for sufficient time and at sufficient concentration to produce the desired functional effect.

Other quality factors include safety, stability,  ease of formulation and production capability at scale.

In safety terms, the therapeutic margin (the ratio of the exposure following an effective dose to the exposure at the maximum safe dose) is critical. Also important are the dose-proportionality of exposure, the variability of exposure between individuals, and the effect of food on bioavailability.

The translational step which exposes humans to the NME is increasingly a major issue for drug discovery programmes. Many diseases previously thought to be homogeneous are now known to be segmented into sub-types, and selection of an appropriate sub-group of the patient population generates increased accuracy and statistical power in the interpretation of clinical trial results. Patient genotype also contributes to the way in which an NME behaves in terms of pharmacokinetics and safety and this can also aid intelligent patient selection for drug evaluation.

The use of biomarkers and imaging technology is now seen to be an essential facet of early stage clinical evaluation and contributes greatly to improved decision-making in this phase of the translation.  These biomarkers can provide measures of disease progression, pharmacodynamic indicators or surrogate measures of both therapeutic efficacy and side-effect liability .

Much of public ‘translational science’ funding is directed to the first time in human studies and to the first demonstration of human efficacy. Indeed many policy makers think that this is the whole of ‘translational science’ and forget about the requirement for a high quality NME whose invention in fact takes a significant part of the 15 year lifespan of the translation process.

Pharmaceutical companies are encouraged by their stock analysts to focus on return on R&D investment. This causes them to limit the overall size of their research investment and to focus only on medicines that they forecast to be profitable enough to recover a return on the estimated $1.5bio cost for each successful drug launched. This has resulted in whole areas of disease being underserved by the commercial community.

Present advances in medicine are providing much improved knowledge on which drug is likely to be effective in particular patient sub-groups as described above. The identification of a well-defined responding patient population is a significant part of the translation process today. This fragmentation/segmentation/personalisation of the marketplace further compromises the financial return for the inventors of new medicines.

The pharmacos’ only response in this situation is to increase the price for treatment of an individual patient. This is fine in some circumstances, but is widely recognised to be inadequate for the whole landscape of new medicine discovery.

New business models are emerging in which other stakeholders collaborate with pharmaceutical companies. In rare, but likely to become more frequent, cases these alternative agencies carry out (or pay for) the whole translation process from discovery to development to delivery to patients. These other stakeholders (‘social investors’) today include governments, medical charities, patient advocacy groups and venture philanthropists. In collaboration mode, these stakeholders provide funding that allows pharmaceutical companies to reduce their costs and also their risks. However, in cases where the patient population is unable to pay realistic prices for new medicines, the whole process will need to be covered by the ‘social investors’. These alternative stakeholders will increasingly emphasise social return along with the straightforward financial return on the investment in a new medicine.

As the pharmaceutical companies search for different economically viable ways of introducing new medicines, they are increasingly supporting ‘open innovation’ and entering into a large number of collaborations with other players. So far,  most of these ‘collaborations’ have usually involved the pharmaco trawling the outside world for ideas that it can support relatively cheaply until the point at which the asset has been sufficiently de-risked to justify bringing it into the internal portfolio. This one-way traffic will increasingly be superceded by a two-way traffic system.  Assets in the internal portfolio which either no longer fit a changed strategic direction for the company, or are forecast to give insufficient financial return, will be out-placed to be further ‘translated’ by other more suitable stakeholders.

The field of new medicines discovery is rapidly moving. We have real opportunities, through science advances and business innovation, to efficiently and effectively ‘translate’ the evolving understanding of disease biology to provide the drugs that will support and promote the health and well-being of future patients.

These exciting developments have encouraged One Nucleus to initiate a series of conferences on the topic. The first ON Helix Conference will take place on 9 July this year at the Wellcome Trust Genome Campus.  Sign up now to hear experts in the field and to join the debate.

Written by Geoff Lawton, Founder, INMedD

Geoff Lawton is a founder of INMedD which will establish a drug discovery social enterprise.

The One Nucleus blog is written by individuals and is not necessarily a reflection of the views held by One Nucleus.

Posted in February 2013 | 1 Comment

Are we there yet?

Some years ago I came across an interesting book while clearing out my father’s stuff after he passed away. In the late 60’s The American Association for the Advancement of Science brought together some of the leading minds of the time to speculate on what the world would be like 30-40 years from then. Looking back today it seems that some of the predictions were astonishingly correct and some were not.  When it comes to the physical sciences it seems the microprocessor and the personal computer, the internet, satellite communication and mobile phones and even the iPod and digital media were apparently to some extent predictable. In the life sciences the situation is very different since it was predicted back then that major killers such as cancer and cardiovascular disease would have been vanquished by now, paraplegics would be walking through regenerative medicine and we would be selecting the characteristics of our children based on voluntary genetic manipulation of our genomes. It seems that there is something fundamentally less predictable in life sciences than say engineering.

So I started to think, well what if we look another 40-5O years ahead, what’s it going to be like?  (Knowing full well that whatever I fantasise about is bound to be an inaccurate prediction).

Entering my daydream I imagined myself walking around with a little microchip chip implanted in my left arm that has my genetic code on it (sequenced by a micro sequencer, these days they do it at birth) which gets updated regularly by my health consultants (used to be called a GP) to track any major mutations during my routine visits. It also stores and tracks compliance with the life style plan that I agreed to (with my employer who pays into my health account) as my part of preventing me becoming ill and remaining productive. The chip works out how much exercise I do and tracks what I eat from edible bar codes in my food and reports that I am indeed taking the preventative diet supplements that I should do. Unfortunately It also monitors all my bad habits and lets my health consultant know if things start to go seriously wrong by tracking some of my vital statistics, all of this is relayed non-invasively by wireless communication of course. It‘s also linked to all my medical records so anybody (with my permission) can know what they need to about me and I can upload any of this to associations that can use the data if I choose to. All this data is also being continuously sent to the national health hub pseudonymised so they don’t know who it comes from, but for general monitoring as part of my contribution to the national health system. If I get something nasty I can always go on patients like me and check what the latest treatments are and then enrol in a clinical trial (advised by my heath consultant) through my relevant disease association (to which I’m syndicated) who use my data in partnerships with drug companies to make new treatments (this gives me preferential access to new medicines). My health consultant can also advise on my personalised treatment based on my genetic endophenotype and a personalised treatment plan can be made available. Bad luck is I may have to co-fund some of this from my health credits. Good news is I have amassed a few health credits for good behaviour (due to my 2 visits to the gym every week and taking my diet supplements) – this comes in the form of a rebate on my income tax which gets me credits (vouchers). Great thing about health credits is I can top them up from additional contributions from my income tax (my employer tops these up also). The government also allows me to deduct some of my tax to spend on supporting my favourite research group/charity since that’s one way these guys get funded to do research now. I have also invested a little of my own money into a portfolio of crowd funded SMEs who do things that matter to me in the health area so that I can support them financially and get a return to supplement my meagre pension, the government of course helps me here via national insurance and tax breaks on these investments. Looking back to 2012 what strikes me is how little choice we had back then, we just did as we were told because we didn’t know any different. Life is good now compared to what it was, I’ll be 105 next month but I am starting to wonder what will it be like for my kids in 50 years from now when they are my age?

Coming back out of my daydream I wonder, are we there yet?

Written by Lars Sundstrom, Director, SARTRE (Severnside Alliance for Translational Research).

The One Nucleus blog is written by individuals and is not necessarily a reflection of the views held by One Nucleus.

Crowd funding:

http://www.ipovillage.com/

http://www.quirky.com/

http://www.opposingviews.com/i/technology/internet/sick-americans-turn-websites-crowd-fund-money-health-care

Non-invasive monitoring:

http://proteusdigitalhealth.com/

http://abcnews.go.com/Technology/GadgetGuide/story?id=4835631&page=1

Personalised medicine and genetics:

http://www.patientslikeme.com/

https://www.23andme.com/welcome/

http://diygenomics.org/

http://abcnews.go.com/blogs/health/2012/10/25/website-crowdsources-cure-for-cancer/

Health care credits and preventive medicine:

http://www.dossia.org/

http://wellnesstaxcredit.com/Welcome.html

Posted in January 2013 | Leave a comment

Training your Future Workforce

Apprenticeships are an efficient, cost-effective way to train a workforce with the precise skills you need for your business – both now and in the future. They are also a source of fresh energy and ideas that can revitalise or stimulate business growth.

Apprenticeship ‘frameworks’ are available for over 1200 job roles from business admin through to lab technicians, healthcare, and digital social media.

An Apprentice will help you:

  • Recruit at relatively low cost
  • Develop the specialist skills to give you competitive edge
  • Ensure professional/trade skills are not lost in your company or wider industry
  • Bring a fresh perspective to the way you work and communicate with customers
  • Develop new ideas and innovations to take your business forward
  • Raise your community profile as a responsible and caring employer

Taking an Apprentice is a commitment but it isn’t complicated and plenty of support and guidance is available. SMEs that are prepared to make the effort will gain a committed and engaged workforce and a business that’s fit for the future.

What’s involved

An Apprenticeship combines a real job with training. Candidates earn while they learn and work towards recognised qualifications that give them job specific skills. In England, Apprenticeships are open to anyone between the ages of 16 and 65, although it is more common to have Apprentices aged between 16 and 24. An Apprentice could also be a new recruit or an existing employee.

Apprenticeships can take between one and four years to complete, depending on the sector and the job role. Apprenticeships for 16-18 year olds must last for a minimum of 12 months.

Candidates work through a series of modules and, on successful completion, receive a nationally recognised qualification in their chosen field. Apprentices are required to have a minimum of 280 hours of ‘guided’ learning away from the job which is delivered by an approved training provider.

Your Apprentice will also receive on-the-job training from you or your team to teach the specific tasks they need for their role and, to learn the ins and outs of how your particular business operates.

Training providers play a vital role in ensuring the success of an Apprenticeship scheme: they don’t just provide the off-site training but, will also help complete the necessary paperwork to make sure the employer complies with relevant legislation.

How much does it cost?

There is a National Minimum Wage for Apprenticeships that applies to Apprentices aged 16-18 and, to those aged 19 and over in the first year of their Apprenticeship. In practice most employers pay their Apprentices significantly more than this minimum rate.

The cost of ‘off-the-job’ training for Apprentices aged 16-18 is fully funded by the Government. For those aged 19-24 the funding is currently at 50%, whilst partial funding is available for the over-25s.

There are also some indirect costs attached to managing an Apprenticeship, such as taking time out of the ‘day job’ to supervise and support a new recruit. This short-term impact on productivity will lessen as the Apprentice acquires new skills and is able to work more independently.

Training providers can advise on the current minimum rates; these are also available from the National Apprenticeship Service website.

The National Apprenticeship Service

The National Apprenticeship Service (NAS) is responsible for supporting, funding and co-ordinating the delivery of Apprenticeships throughout England. The NAS website is full of information for employers and potential candidates about the frameworks available, current wage guidelines, your nearest training provider, vacancies in the area, and the ins and outs of setting up a scheme. www.apprenticeships.org.uk.

Setting up your own scheme

Employers wishing to set up their own scheme should contact training providers in the area that offer Apprenticeships; typically this includes Further Education colleges and some private training companies. The NAS website provides details of providers in each area and the frameworks available. The Goldsmith Apprenticeship Academy in Letchworth Garden City has a comprehensive range of Apprenticeships including Lab Technicians. For more details or to meet a Business Adviser and discuss your specific requirements, call Rosemary Adams on 01462 424242 ext 2021 or, Christine Sharman on 01462 424242 ext 4208.

Written by Bridget Poulter, Marketing Executive, Business Goldsmith Centre, part of the North Hertfordshire College group

The One Nucleus blog is written by individuals and is not necessarily a reflection of the views held by One Nucleus.

Posted in December 2012 | Leave a comment

Where to go for funding when all you’re hearing is “No”?

So, you run a revenue generating business with strong growth potential in a sector that is growing.  You and your team are building the business but you need funding to take it to the next level. And that’s where you’re stuck…

Keen to avoid giving up equity, you’ve talked to the banks but they’re not playing ball and you can easily relate to recent data showing that High Street banks turned down a staggering £1.3billion of overdraft and loan applications from small and medium-sized firms in the first quarter of this year – equivalent to rejecting 53 applications an hour.

It seems it’s all in the balance sheet; they want to see robust sales with consistent growth.  You can show the sales but, for various reasons, your running costs, margins and volume aren’t what they could be, so the balance sheet doesn’t look pretty and your growth strategy isn’t cutting it.

What are your options?

  • Friends and family – great if you can get it (!) but you’ve probably already been there
  • Equity investment from angels or VC’s – could bring both finance and expertise into the business but if you are a) reluctant to dilute share capital and b) short on time (it can take 6 – 12 months to secure equity finance), this one probably won’t work
  • Grant for R & D – the £180m Biomedical Catalyst, is on your radar for current and future projects but that doesn’t answer your need for funding to allow you to grab the opportunities presented by the market today

If all others doors are closed, consider the Regional Growth Loan Scheme (RGLS) as it is specifically aimed at established businesses that have credible growth plans but cannot access the money they need to implement those plans.

Rather than looking at historic performance, like many other lenders/funders, the RGLS is more focused on forward plans and cash flow.   If you can inspire confidence in your product, sector and team and the company has a robust growth strategy in place, the fund managers are more likely to say ‘Yes’, where others have said ‘No’.

The RGLS is run by Finance East (part of The FSE Group).  It has already lent £8.5m to some 60 companies in the East of England and leveraged another £10.5m against these loans.  So a loan from the RGLS could convert a ‘No’ from other sources to a ‘Yes’ if they see an opportunity to de-risk their loan or investment.

Of course, the risk profile of the RGLS does mean higher interest rates (10% – 14%) but when you compare the likely cost of equity finance on exit with the cost of interest on a loan over, say, 5 years, you start to get things into perspective.  We encourage companies to focus on what the loan finance will help them achieve.  If a loan costs 12% but the likely return is 25%, there’s your answer.

If your company fits the criteria and you’re looking for between £50,000 and £200,000, get in touch.

NB The Regional Growth Loan Scheme is for companies in the East of England but there are other funds (known as the Jeremie Funds), run on a similar basis in the North West, North East, Yorkshire and North Wales.

Written by Stuart Ager, Senior Fund Manager, Finance East, part of  The FSE Group

The One Nucleus blog is written by individuals and is not necessarily a reflection of the views held by One Nucleus.

Posted in November 2012 | Leave a comment