Medgenics Awarded $2.2 Million Grant from the Israeli Office of the Chief Scientist
May 09 2012 - 9:00AM
Business Wire
Medgenics, Inc. (NYSE Amex: MDGN and AIM: MEDU, MEDG),
the developer of a novel technology for the sustained production
and delivery of therapeutic proteins in patients using their own
tissue, today reported that its wholly owned subsidiary, Medgenics
Medical Israel Ltd. (MMI) was awarded a government grant of up to
NIS 8.1 million (approximately USD 2.2 million), net, from the
Office of the Chief Scientist (“OCS”) at the Ministry of Industry,
Trade and Labor of Israel.
The grant will be used to cover R&D expenses for the
12-month period from October 2011 through September 2012 to support
further research and clinical development of the Company’s
proprietary tissue-based Biopump™ platform technology in a number
of indications including anemia and hepatitis.
The OCS awards grants to companies from various industries in
Israel to foster technological innovations. Recipient selections
are based on multiple criteria including the uniqueness of a
company's technology, and the potential market it addresses, plus
the robustness of the company’s business including financial
position, R&D capabilities and management experience.
Under the terms of the OCS grant, MMI will repay the grant in
full, plus interest, through royalties on revenue received from
commercializing the developed technology. The payment of royalties
is contingent on such revenues and, in the absence of such
revenues, no royalty payments to the OCS are required.
“This marks our sixth consecutive year of being selected to
receive non-dilutive funding from the Israeli OCS. We are grateful
for this support, which underscores their ongoing belief in the
potential of our innovative Biopump platform technology. Prior
grants have helped to fund the development of our technology to a
point where we are now working to commence clinical trials for the
treatment of anemia and hepatitis in the United States and Israel.
We anticipate this grant will further advance our product
development and will help us to achieve a number of important
milestones,” stated Andrew L. Pearlman, Ph.D., President and Chief
Executive Officer of Medgenics.
About Medgenics
Medgenics is developing and commercializing Biopump™, a
proprietary tissue-based platform technology for the sustained
production and delivery of therapeutic proteins using the patient's
own skin biopsy for the treatment of a range of chronic diseases
including anemia, hepatitis, and hemophilia, among others.
Medgenics believes this approach has multiple benefits compared
with current treatments, which include regular and costly
injections of therapeutic proteins.
Medgenics has three long-acting protein therapy products in
development based on this technology:
- EPODURETM to produce and deliver
erythropoietin for many months from a single administration, has
demonstrated elevation and stabilization of hemoglobin levels in
anemic patients for six to more than 36 months in a Phase I/II
dose-ranging trial, and is about to commence a Phase IIa
safety/efficacy trial in dialysis patients in Q2 2012 in Israel. An
Investigational New Drug application has been filed with the U.S.
Food and Drug Administration (“FDA”) to initiate a Phase IIb study
to evaluate the safety and efficacy of EPODURE in the treatment of
anemia in dialysis patients in the U.S.
- INFRADURETM for sustained production
and delivery of interferon-alpha for use in the treatment of
hepatitis is awaiting final approval of two Phase I/II trials in
Israel in hepatitis C, slated to commence in Q3 2012, and is filed
for Orphan Drug Designation with the FDA to treat hepatitis D.
- HEMODURETM for sustained production and
delivery of clotting Factor VIII therapy for the sustained
prophylactic treatment of hemophilia is now in development.
Medgenics is focused on the development and manufacturing of its
innovative Biopumps, aiming to bring them to market via strategic
partnerships with major pharmaceutical and/or medical device
companies.
In addition to treatments for anemia, hepatitis and hemophilia,
Medgenics plans to develop and/or out-license a pipeline of future
Biopump products targeting the large and rapidly growing global
protein therapy market, which is forecast to reach $132 billion in
2013. Other potential applications for Biopumps include multiple
sclerosis, arthritis, pediatric growth hormone deficiency, obesity
and diabetes.
Forward-looking Statements
This release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, Section 21E
of the Securities Exchange Act of 1934 and as that term is defined
in the Private Securities Litigation Reform Act of 1995, which
include all statements other than statements of historical fact,
including (without limitation) those regarding the Company's
financial position, its development and business strategy, its
product candidates and the plans and objectives of management for
future operations. The Company intends that such forward-looking
statements be subject to the safe harbors created by such laws.
Forward-looking statements are sometimes identified by their use of
the terms and phrases such as "estimate," "project," "intend,"
"forecast," "anticipate," "plan," "planning, "expect," "believe,"
"will," "will likely," "should," "could," "would," "may" or the
negative of such terms and other comparable terminology. All such
forward-looking statements are based on current expectations and
are subject to risks and uncertainties. Should any of these risks
or uncertainties materialize, or should any of the Company's
assumptions prove incorrect, actual results may differ materially
from those included within these forward-looking statements.
Accordingly, no undue reliance should be placed on these
forward-looking statements, which speak only as of the date made.
The Company expressly disclaims any obligation or undertaking to
disseminate any updates or revisions to any forward-looking
statements contained herein to reflect any change in the Company's
expectations with regard thereto or any change in events,
conditions or circumstances on which any such statements are based.
As a result of these factors, the events described in the
forward-looking statements contained in this release may not
occur.
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