US firm Stemgent's company Ubiquigent has chosen Scotland as its first base outside the US. The company will be working in partnership with Dundee University to develop new drugs.

The company has invested £3million in the operation in Dundee, which will carry out research into drugs for cancer and arthritis treatments.

The Scottish Government called it an "excellent investment" in Scotland's life sciences sector.

Skills Minister Keith Brown commented on the subject, saying, "Our pioneering research and technology is globally renowned. We have a clear academic lead in this field".

"The Scottish government is fully committed to growing this sector and maximizing the talent within the sector", he stated.

Ubiquigent will be producing biological products and services generated by the Scottish Institute for Cell Signaling (Scills), which is also based at the university.

Sir Philip Cohen, of Scills, said, "The long-term aim of the project was to attract new biotechnology firms to Scotland. It is therefore extremely exciting and most gratifying that Ubiquigent Ltd has been formed just one year after the launch of Scills, several years earlier than the predictions I made in my business plan".

Three employees have been recruited by Ubiquigent. They will be based at Scills before moving to a purpose-built facility later this year.