Medgenics, the company that has developed a novel technology for the manufacture and delivery of therapeutic proteins continuously in patients using their own tissue, has successfully raised additional funds to finance further advances with its Phase I/II clinical trial for its product EPODURE (for the treatment of anaemia).
It will also initiate steps towards the launch of a Phase I/II trial for its product INFRADURE (for the treatment of hepatitis-C), through the private placement of $4 million of new convertible debentures. This fund raise was in excess of the original $3 million the company had targeted and, the Directors believe, indicates support from both new and existing investors in the continued development of the company.
The company's Phase I/II clinical trial using EPODURE to treat anaemia in patients with chronic kidney disease, has demonstrated proof of concept of the Biopump. Designed to produce and deliver a therapeutic dose of EPO steadily for six months or more, EPODURE Biopumps have already provided effective anaemia treatment in patients for 6-12 months, even at the low administered dose.
Medgenics intends to develop its innovative products and bring them to market via multiple strategic partnerships with major pharmaceutical and/or medical device companies. In addition to treatments for anaemia, hepatitis-C, and haemophilia, 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 US $95 billion by the end of 2010. Other potential applications of Biopumps producing various proteins include multiple sclerosis, arthritis, paediatric growth hormone deficiency, obesity, and diabetes.
The company received confirmation on 24 September 2010 that the Kanter Family Foundation and CIBC Trust Company (Bahamas) Limited, as trustee, each purchased $100,000 of debentures and each received warrants to purchase 375,000 common shares of US $0.0001 each in the capital of the Company (“Common Shares”). In addition, Chicago Investments, Inc. purchased $50,000 of debentures and received warrants to purchase 187,500 Common Shares. These three entities are “Related Parties” of Joel Kanter (a Director of the Company) for the purpose of the AIM Rules.
Andrew Pearlman, CEO, commented: “The closing of this round with greater demand than we had anticipated clearly indicates there is great support for the company’s ongoing development plans. The proceeds will allow us to move forwards with the ongoing Phase I/II trial for EPODURE, initiate work on the INFRADURE clinical trials and to further our progress with other applications of our biopump platform technology while maintaining dialogue with potential partners for new protein applications and moving forward with potential commercialization deals.”
Medgenics Inc
