Sterile insect pioneer secures funding to fight the scourge of Dengue Fever

Oxitec, a pioneer in controlling insects that spread disease and damage crops, has secured £8million of new investment, in a funding round led by specialist investment manager Oxford Capital.  The investment will fund the roll-out of Oxitec’s insect control technology in Western and developing countries, including important developments in combating the increasing threat of Dengue Fever, which infects over 50 million people each year.

The new investors, including Asia Pacific Capital, are based in many of the regions affected by insect-borne disease, including the USA, Argentina, Brazil and South East Asia.

David Mott, Investment Director, Oxford Capital said:
“Oxitec has created breakthrough technology to control disease-carrying insects.  The fact we have secured backing from investors in many of the countries affected by these infections shows they recognise the enormous impact this technology could have addressing this growing problem.  Oxitec is exporting advanced British technology to the world and is the perfect example of the type of business the UK needs to get the economy back on its feet.”

Hadyn Parry, Chief Executive, Oxitec, says:
“We’re focusing on Dengue Fever and agriculture at present, but in the future there are many more applications we could develop. The success of our funding round underlines the need for a new approach to dengue and the confidence investors from around the world have in our potential.  Oxford Capital did a terrific job supporting us with the fund-raising, in particular helping us to develop connections with new international investors.  They are great advocates of UK technology businesses and have added a lot of value to our business.”

W. Gage McAfee, Managing Director, Asia Pacific Capital, says:
“Asia Pacific Capital focuses on the emerging economies of China, India, Indonesia and Malaysia, where insect-borne infections and food security are increasing problems with the potential to hold back economic growth.  Oxitec’s proven technology could make a real difference and we were keen to back the business – both for its potential for capital growth and the positive impact its technology could have on the wider regional economy.”

 

Oxitec’s technology

Oxitec uses advanced genetics to create sterile male insects to target infection-carrying insect populations, unlike pesticides which affect all insects.  The technique enables specific species to be targeted, such as Aedes aegypti, the mosquito which spreads Dengue Fever, without affecting other insects.  The technology also has the potential to reduce crop damage by controlling insects that can cause losses of 20-40% of food production every year.

 

Growing threat of Dengue Fever

Effective measures to control Dengue Fever are urgently required with the disease becoming geographically more wide-spread, more prevalent and more virulent.  The incidence of dengue has increased 30 fold in the last 50 years and according to WHO 2.5Bn people are now at risk. The severe form of dengue, known as Dengue Haemorrhagic Fever, was first recognized as recently as the 1950s but today has become has become a leading cause of hospitalization and death among children in Asian and Latin American countries. .  There is neither medication nor a vaccine to prevent Dengue Fever.  Oxitec’s technology has great potential to assist health officials in combating the disease carrying dengue mosquito. 

 

Targeted Fund Raising

Oxford Capital worked closely with Oxitec to lead one of the largest recent growth capital funding rounds at a difficult time to raise new money.  Its successful approach was to agree the strategic focus for new investment with Oxitec, targeting investors in countries affected by insect-borne infection’ and then working closely with the business to bring in new institutional, academic foundation and family office investors.

 

For further information please contact:

  • David Mott, Investment Director, Oxford Capital Partners  01865 860760
  • Hadyn Parry, Chief Executive, Oxitec Ltd    01235 832393
  • Mike Lord, Lord Public Relations      07831 401 311

 

About Oxford Capital

Founded in 1999 Oxford Capital is a specialist investment manager working on behalf of institutional and private investors.  Its focus is on investing in emerging companies around three super-growth themes of communications, healthcare and sustainability. Its expertise lies in accelerating businesses with potential for high growth into global markets.

Oxford Capital currently oversees a portfolio of around 25 companies, many of which have expanded into international markets in Europe, the US, Latin America, the Middle East and Asia.

 

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