Biotech Capital kicks off expansion plans with $3.8m buyback

Shareholders of Biotech Capital (ASX:BTC) have approved a $3.8 million buyback of shares and options held by the Challenger Group.

They also approved the appointment of Titan Bioventures as Biotech Capital's new manager. Titan is an entity associated with the existing management team.

"The benefits of the change are significant with the new structure providing a stronger base for attracting and retaining talented investment professionals, and includes an immediate expansion of the investment team," said Biotech Capital managing director Harry Karelis.

"There are currently three [people on our investment team], and we will be basing someone in London, and another person in Australia over time. Having someone in London will be important to access northern hemisphere intelligence.

"We take the view that there are opportunities to make money by building bridges from Australia to the UK. We'll be co-locating with one of the premier biotech venture capitalists in the UK."

The revenue sharing arrangement between Titan and Biotech Capital will also provide shareholders with exposure to any growth activities undertaken by Titan. "In time we may be looking to launch new funds in the biotechnology area," said Karelis.

Biotech Capital currently holds investments in nine biotechnology companies, including listed firms Starpharma, Clinical Cell Culture and Alchemia, and privately-held Proteome Systems, Xenome, and Stem Cell Sciences.

Challenger's decision to divest its shareholding in Biotech Capital is the result of its decision to focus on sectors other than biotechnology private equity.