Cork drug company seeking €2.5m to fund clinical trials

Cork-based drug development company Solvotrin Therapeutics is seeking €2.5 million from investors to fund toxicology studies and clinical trials for a compound it has developed for treating cholesterol diseases.

The money is being raised via the employment and investment incentive scheme, which allows investors to avail of a tax relief of up to 41 per cent.

According to a document circulated about the fundraising, the investment term is three years, with a target return of 68 per cent for investors. This comprises the tax relief and a 27 per cent return. The minimum investment is €25,000 and the maximum €150,000. The investment is open until the turn of the year.

Co-founder and chief executive Pat O’Flynn said the company had got commitments for about half of the money to date.

Solvotrin plans to raise €5.5 million in total, with the balance expected to come from local and international venture capital groups. “We have a number of institutional investors that want to invest as well,” Mr O’Flynn said.

“We plan to use the funds for a two-year programme of completing toxicology and phase one clinical trials of a new chemical entity. We believe it can revolutionise the treatment in the reduction of cholesterol.”