A York biotech venture, which two years ago raised £1.3 million for expansion and research to help drug companies combat serious viral infections, today announced that it has raised another £400,000.

Replizyme, on the York Science Park at Heslington, has already developed screens for use in the early-stage discovery and development of new drugs to fight infectious diseases like hepatitis C and HIV.

The new injection of cash comes with the restructuring of the company, as Yorkshire businessman Steven Stocks is appointed executive chairman.

He has bought a minority stake in the company as part of the latest fundraising, with the balance of the new money coming from existing shareholders. Dr Kate Darley continues as chief executive.

Mr Stocks was one of the founders of Trinity Pharmaceuticals in Huddersfield in 1994. In 1996, he led a buy-out of the company, which was subsequently acquired by Chiesi Pharmaceuticals, of Italy, in 2000 for £50 million.

Replizyme was founded in 1999 by scientists Dr Joe Jaeger, a leading authority on viral polymerases, and Professor Dave Rowlands, who held the chair of molecular virology at Leeds University.

It began as a spin-off from Leeds University, then found temporary premises at York College, in Tadcaster Road , before moving to the York Science Park in August, 2002.

Now the firm has more than 200 shareholders and has built up its customer base of international pharmaceutical companies in both Europe and the USA.

Mr Stocks said: "Replizyme is rapidly becoming a significant player in the early stage screening of drug candidates. In addition to our existing range of viral and human polymerase screens, we are now developing new products that can counter drug resistance and provide detailed information as to the efficacy of lead compounds". The company was advised on the restructuring transaction by Robert Solyom, of Leeds chartered accountants Brown Butler.

Mr Solyom said: "It was very pleasing to have attracted someone of Steve's experience and calibre who has recognised the potential value of the company to the extent that he has also invested in it."

Updated: 10:36 Friday, April 08, 2005