Phagenesis raises £2 million financing

News Release 3–1 September 2010

Manchester, September 1st 2010 – Phagenesis Limited, a leader in technology for the treatment of swallowing dysfunction, has raised £2 million of investment to support the development of a new class of treatments for stroke patients who suffer from dysphagia, a common condition that prevents or impairs the safe swallowing of food and drink.

The company, which was spun out from The University of Manchester, has been successful in rapidly attracting funding from a number of experienced investors. Commenting on the funding news, Phagenesis® CEO Daniel Green said: “To raise £2 million in a few months in the current economic climate is a remarkable achievement and was made possible because the Phagenesis® technology has accumulated substantial amounts of exciting data in human subjects. The investment will enable us to undertake design and clinical trials of a production device which we expect to be available globally.”

The Phagenesis® treatment involves a device that delivers electrical pulses to the throat region that can “awaken” the brain to help restore swallowing function. At least 50% of stroke victims have impaired swallowing. Apart from a severe reduction in quality of life, dysphagia often leads to the inhalation of liquids and the development of life-threatening pneumonia. In addition, the financial burden of dysphagia can run to thousands of pounds per patient in the first few weeks alone, and may continue indefinitely if the patient’s swallowing is not restored.

Dr. Conor Mulrooney, COO and Professor Shaheen Hamdy founded Phagenesis in 2007. Prof. Hamdy, the inventor of the technology is Professor of Gastroenterology at Salford Royal Hospital NHS Trust and was previously Fellow at the Sobell Department of Neurophysiology, UCL. The company appointed earlier this year Henry Hyde-Thomson as Chairman and Daniel Green as Chief Executive Officer.