Xceleron

Jul 17, 2020

Menu By Julie Hayes XCELERON, the York pharmaceutical company, is moving its operations to the United States after going into administration. The business, which was founded in 1997 as a spin-off of the University of York , was sold in a pre-pack administration to its existing management team and venture capital investors and will continue to operate from its laboratory in Germantown, Maryland. The business, which employed about 20 people over three sites at York Science Park and FERA in Sand Hutton, will continue to employ four people in client meeting roles such as project managers and its chief scientific officer. Mike Butler, chief executive of the company, which uses nanotechnology to accelerate drug development, said: “Some of them are in the process of looking for other jobs and some are hoping to transfer to the States as well. “We are going to continue to run the business in the United States, simply because we have a much newer facility there. Our site in York is perfect for a start-up but at this stage in the company’s development, being based in three buildings is not ideal.” He said the company was affected by the state of the economy and sales didn’t support keeping all of its premises. Its existing venture-capital investors Albion Ventures and Solon Ventures have invested a further $2.4 million to help the company relocate and invest in staff and equipment in the US, which is expected to be completed by the end of March. He said: “The value proposition everybody sees in the company hasn’t changed. It’s a question of where is the best place for us to efficiently run the business. One of the challenges we had when it came to making that decision was that we weren’t in one facility in York, but in three buildings in two locations.” A spokesman for the University of York said: “While we are disappointed that Xceleron is scaling back its UK operation, we are pleased that the business is continuing and will still be in a position to deliver the benefits to the pharmaceutical industry we originally anticipated. The fact that some jobs are being retained in the UK is also welcome. In due course, we hope that, once the momentum has returned to the pharmaceuticals market, Xceleron can resume its UK operation at its previous level.”