SolasCure EIS

Co-invest alongside Abcam’s Jonathan Milner, VCs and global biopharmaceuticals in biotech company developing patented chronic wound treatment

Chronic wounds represent a silent epidemic – it is estimated 1-2% of the population of developed countries will experience a chronic wound during their lifetime. So, at any given time, some 100 million people in the world might suffer from a chronic wound. 

The global wound care market is predicted to exceed US$30 billion by 2027 – driven by factors such as an ageing population and rising rates of diabetes and obesity, and their associated risk of chronic wounds.

Wound healing is a lengthy and complex set of biological processes and effective treatment has been a long-term problem for healthcare professionals. The first key step is cleaning the wound (debridement). However, current methods tend to range from effective but invasive and costly, to non-invasive but slow and lacking in efficacy. Nature has its own proven solution: maggots, which feed on dead tissue, leaving behind a clean wound for healing. That said, maggot therapy is not widely used due to logistical challenges as well as distaste.

Biotechnology company SolasCure Limited (“SolasCure” or “Company”) is attempting to address this. It uses biomimicry to synthetically clone and produce the key enzyme from maggots’ saliva, which is then incorporated in a topical hydrogel – Aurase®. The Company believes Aurase® could be usable in either domestic or in healthcare settings once the regulatory approvals are obtained. The Company is conducting clinical trials to demonstrate that the use of this treatment could lead to faster wound cleaning, better patient outcomes and reduced healthcare costs.

Aurase® is currently at Phase 2A stage FIP “First in Patient” clinical trial stage and has patents granted in the EU, US, Canada, China, Japan, Australia and South Africa.

SolasCure EIS – research report border

SolasCure was founded in 2017 by medical doctor and Executive Chairman Dr Sam Bakri, as a biotechnology IP spin-out from EUR 214 million market cap BRAIN Biotech AG in Germany. Dr Bakri has assembled a world-class team and board with a wealth of deep knowledge and experience in wound care, clinical trials and the global commercialisation of medical products. 

The Company is now looking to raise up to £5 million under EIS to complete the Phase 2A clinical trials, start Phase 2B (safety and efficacy proof) trials and subsequently scale up the business ready for sales via licensing or partnership arrangements – high risk and not guaranteed. Wealth Club has an exclusive minimum allocation of £500k, after which applications will be accepted on a first-come, first-served basis. 

Dr Bakri is investing in this round alongside existing investors Seneca Partners, Jonathan Milner, BRAIN Biotech and EVA Pharma – a total commitment of c.£2.5 million, representing at least 50% of this round. Their capital is expected to be invested in the Company in November. 

In our view, this is a rare opportunity for private EIS investors to co-invest alongside such a strategic and supportive shareholder base. Wealth Club investors may wish to act promptly if interested as we expect significant investor demand.

Investing at this early pre-revenue stage means the rewards could be significant, but so are the risks. Based on the Company’s forecasts, management’s target mid-case return is 13.6x (IRR 45%), high case 21.6x (IRR 55%) after seven years – high risk and not guaranteed.

Important: The information on this website is for experienced investors. It is not advice nor a research or personal recommendation to invest. If you’re unsure, please seek advice. Investments are for the long term. They are high risk and illiquid and can fall as well as rise in value, so you could get back less than you invest.


The deal at a glance

Type Single company EIS private offer
Stage Pre-revenue
Date started trading June 2017
Funding to date £11.8 million since inception from 3 VCs, 2 pharma/biotech companies, Jonathan Milner, private investors and management
Co-investors BRAIN Biotech, EVA Pharma, Jonathan Milner, Seneca Partners, RAB Capital, Bionova Capital and Dr Bakri
Sector Healthcare
Fully diluted pre-money valuation See research report
Market size $7 billion with CAGR of 6%
Business model B2B
Revenue to date Pre-revenue
Revenue model Sales of Aurase® Wound Gel to hospitals and pharmacies worldwide
Profitability forecast from FY26
Forecast revenue in year 7 £277.7 million
Forecast EBITDA in year 7 £70.4 million
Target return in year 7 13.6x mid-case
Target IRR 45% IRR
Projections and targets are for illustration only and are not guaranteed

Highlights 

  • Biotech company developing potentially market-disruptive treatment for chronic wounds, with global market opportunity
  • Strong IP position with no freedom to operate issues. Product patents granted in the EU, US, Canada, China, Japan, Australia and South Africa
  • Backed by existing institutional investors Seneca Partners, RAB Capital and sector specialists BRAIN Biotech and EVA Pharma 
  • Collectively, existing investors expected to take up at least half of the round – same price as Wealth Club investors
  • World-class team of scientists and medics supporting highly qualified management 
  • Y7/2028 forecast revenue £277.7 million, EBITDA £70.4 million – not guaranteed 
  • Mid-case target return of 13.6x (IRR 45%), high case 21.6x (IRR 55%) after seven years – forecast, not guaranteed
  • Private pre-revenue single company with no diversification – high risk 
  • Minimum investment £20,000 (1,000,000 shares at £0.02 per A Ordinary Share)

The overview provided on this website is based on the information available in the Information Memorandum prepared by the Company and additional information and representations provided by the Management upon request. Wealth Club has reviewed the information provided but not verified or audited it. Please read the offer documents carefully to form your own view and ensure you wholly understand the potential benefits and risks.

SolasCure EISWhat does SolasCure do?

SolasCure is an EIS-qualifying business headquartered in Cambridge, UK, with a team of over 30 employees, consultants and advisors developing a potentially disruptive medical product for the cleaning (known as “debridement”) of chronic wounds. 

It was set up in 2017 by Dr Sam Bakri, who during his years of training as a medical doctor, spent significant time cleaning patients' chronic wounds, as well as significant effort helping them cope with the chronic pain and inconvenience of wounds that refuse to heal. Determined to find a better solution, he was introduced to the scientists at BRAIN Biotech in Germany who had been researching the potential for a maggot based enzymatic solution to chronic wounds for approximately five years. 

The Company’s first product, Aurase®, is a hydrogel containing a highly specific enzyme, isolated and cloned from medical maggots. 

Management believes the use of Aurase® will lead to more effective debridement than with traditional/current treatment methods, anticipating it will be faster, lower pain, more convenient and cheaper than existing products.

Download your research report to find out more

  • What is the market opportunity?
  • How does SolasCure intend to use the funding?
  • How does SolasCure's product compare to currently available alternatives?
  • What might the possible exit options be?

SolasCure EIS – research report border

Risks – important 

This, like all investments available through Wealth Club, is only for experienced investors happy to make their own investment decisions without advice.

Before you invest, please carefully read the research report and the full investment documentation – including the Information Memorandum which contains further details on the considerable risks, alongside the Wealth Club Risks and Commitments.

This is a single company private offer with no diversification. It is an early-stage, pre-revenue business. You could lose the amount you invest.

Remember, any kind of early-stage investing is very high risk. If you invest in ten different early-stage companies, you should expect some to fail, some simply to return capital, and only one or two to do well, in some cases outweighing the losses of the others.

Structure and fees

Investors will pay no direct initial or ongoing charges to invest. Fundraising costs are being met by the Company. Wealth Club will be entitled to a performance fee on exit. 

Please refer to the Schedule of Charges for more details on charges. 

All the services Wealth Club and, where applicable, its subsidiaries provide are governed by the Terms and Conditions of the Wealth Club Services.

Our view

In our view, SolasCure is making strong progress towards developing a potentially disruptive medical product that, if clinical trials are positive, could displace its main competitor and achieve global commercial market success – high risk and not guaranteed. Management and the board are highly knowledgeable in the biotechnology and medical sectors, as well as successful in the commercialisation of a new product, and together they are generating significant interest in Aurase®. 

This is an opportunity to invest in an exciting early-stage business alongside super angels, global pharmaceutical companies and financial institutions with the benefits of EIS. It is a high-risk offer but returns could be commensurate for experienced investors willing to invest at this very early stage. As always, experienced investors should form their own view, and please remember you should not invest money you cannot afford to lose.

Wealth Club aims to make it easier for experienced investors to find information on – and apply for – tax-efficient investments. You should base your investment decision on the provider's documents and ensure you have read and fully understand them before investing. This review is a marketing communication. It is not advice or a personal or research recommendation to buy the investment mentioned. It does not satisfy legal requirements promoting investment research independence and is thus not subject to prohibitions on dealing ahead of its dissemination.

The details

Type
Single company
Sector
Healthcare
Target return
13.6x (IRR 45%)
Funds raised / sought
£5.0 million sought
Minimum investment
£20,000
Deadline
28 Jan 2022
Last updated: 22 October 2021

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