Advent and Prelude sell stakes in DRI to US trade buyer

Advent Venture Partners and Prelude have sold DNA Research Innovations (DRI), a UK biotech company, to US group Invitrogen Corporation.

Invitrogen paid US$35m in cash, and may be obliged to pay contingent payments of up to US$30m based upon the completion of certain R&D milestones. Advent Private Equity Fund III expects to make a 3x return following the milestone payments.

Prelude will receive around £3m in cash over the next 60 days in respect of its holding in DRI. The remaining consideration is conditional and Prelude could receive further cash payments of up to £3m over the next 18 months. Following the sale, Prelude changed its valuation of DRI from £2m at September 30, to £5m meaning the sale represents a multiple of 2.5x.

Prelude originally invested in DRI in 2000 as part of a £3m funding round along with the Prelude Trust plc and the Dow Chemical Company. Advent invested £3m in December 2002 where it was the largest shareholder.