Imperial Innovations, Invesco Perpetual and Mercia have backed the new company that aims to develop therapeutic treatments for cancer and wasting diseases, such as cachexia.

Mercia, which provides venture capital for technology start-ups in the West Midlands, was the founding investor in Hybrid and has supported the company since it was spun out from the University of Birmingham. John Beadle, who was the chief executive of Myotec and co-founded PowderMed, which was sold to Pfizer for more than $300 million in 2006, will lead PsiOxus.

PsiOxus chairman Michael Moore comments: ‘As a combined entity, we have the clinical trials expertise among our scientific founders to develop promising new therapeutics to treat cancer and other serious diseases.’