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British Patient Capital announces £5.5m commitment to Phagenesis

Press release 04 March 2024

British Patient Capital has made a £5.5m commitment to Manchester-based medical device company Phagenesis, through its Future Fund: Breakthrough programme and co-investment programme.

Phagenesis is a medical device company which has developed a neurostimulation system to treat swallowing dysfunction. Their product, Phagenyx®, targets and restores the neurological components of swallowing coordination and control that are disrupted due to brain injury (including stroke) or because of prolonged mechanical ventilation. Patients with swallowing dysfunction (dysphagia) are unable to safely or effectively eat, drink, or manage their own saliva. Dysphagia can often lead to life threatening complications such as pneumonia and is also associated with substantially higher healthcare costs.

The investment is part of Phagenesis’ Series D financing round and will see British Patient Capital join other investors including EQT Life Sciences, Sectoral, Northern Gritstone and Aphelion.

The investment is primarily intended to support commercialization. It will also support clinical trials, regulatory activities, as well as research and development of pipeline products.

Phagenesis has built a leading solution for patients suffering from dysphagia. Their technology has the ability to deliver great results for patients whilst also delivering healthcare savings. We are delighted to support them as they take the next steps in their growth journey. Ian Connatty Managing Director, Direct & Co-investment, British Patient Capital
This investment from a highly experienced international investor syndicate confirms the game changing potential of our novel and proven therapy Phagenyx, which was invented in the UK. While we are still headquartered in the UK, we will now invest in exceptional international talent to scale up our global customer outreach and to support passionate clinicians who want to bring our therapy to those millions of patients who suffer from dysphagia every year. Reinhard Krickl CEO of Phagenesis

The £375m Future Fund: Breakthrough programme invests in R&D-intensive UK companies with cutting edge technologies. In the recent Autumn Statement, the Chancellor announced that the Future Fund: Breakthrough programme is being extended with at least an additional £50m to invest in high-growth, innovative firms.

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Notes to editors

About British Patient Capital

British Patient Capital Limited is a wholly owned commercial subsidiary of British Business Bank plc, the UK government’s economic development bank. Its mission is to enable long-term investment in innovative firms led by ambitious entrepreneurs who want to build large-scale businesses. Launched in June 2018, British Patient Capital has more than £3bn of assets under management, investing in venture and venture growth capital to support high growth potential innovative UK businesses in accessing the long-term financing they require to scale up. Find out more here.

British Business Bank plc and its subsidiary entities are not banking institutions and do not operate as such. They are not authorised or regulated by the Prudential Regulation Authority (PRA) or the Financial Conduct Authority (FCA). A complete legal structure chart for British Business Bank plc and its subsidiaries can be found on the British Business Bank plc website.

British Patient Capital makes commitments and invests on its own behalf and on behalf of third-party investors whose investments British Patient Capital manages.

The transaction described above does not constitute or imply any endorsement, warranty or recommendation by the UK government, the British Business Bank plc, its subsidiaries or any other party in respect of Phagenesis or its products or services.

About Phagenesis

Phagenesis® Ltd, is a private MedTech company co-founded by Dr. Conor Mulrooney and Professor Shaheen Hamdy from the University of Manchester in 2007. Phagenesis offers innovative treatments for neurogenic dysphagia using pharyngeal electrical stimulation, PES. The Phagenyx® Neurostimulation System is the result of years of rigorous scientific research, initiated by Professor Hamdy, and has been featured in numerous clinical publications. For additional information, visit www.phagenesis.com

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