MEDGENICS SIGNS DEVELOPMENT AGREEMENT
October 23 2009 - 2:00AM
UK Regulatory
TIDMMEDG
RNS Number : 2665B
Medgenics Inc
23 October 2009
Medgenics, Inc.
('Medgenics' or the 'Company')
MEDGENICS SIGNS DEVELOPMENT AGREEMENT
WITH MAJOR INTERNATIONAL PHARMA COMPANY
Marks first step towards commercialization of Medgenics' Biopump tissue protein
therapy technology
Focus on sustained treatment of Hemophilia
* Feasibility agreement worth up to $7 million (including preclinical development
funding and an option to proceed to commercial agreement)
* Medgenics' first Biopump agreement with a major healthcare corporation
* Uses Biopump in a new application to produce blood clotting Factor VIII
* Deal expected to enhance Medgenics' ongoing efforts towards commercial
agreements for other applications of the Biopump platform technology
Misgav, Israel; London, UK and Vienna, VA, - 23 October 2009 - Medgenics (AIM:
MEDG and MEDU) is pleased to announce that it has signed a preclinical
development and option agreement with a major international biopharmaceutical
company that is a market leader in the field of hemophilia. This groundbreaking
feasibility agreement is worth up to $7 million in payments that will include
funding for preclinical development of Medgenics' Biopump protein technology to
produce and deliver clotting protein Factor VIII for the sustained treatment of
hemophilia.
Under the terms of the agreement, Medgenics will receive $4 million to work
exclusively with this partner for one year to develop a Biopump to test the
feasibility of continuous production and delivery of this clotting protein.
Additional payments totaling $3 million are payable upon Medgenics meeting
certain technical milestones and upon the partner's exercise of an option to
extend the exclusivity through an additional period to negotiate terms to
commercialize the Biopump technology for Factor VIII. This is a new application
of the Biopump tissue protein therapeutic platform, which has previously
demonstrated success in the production of erythropoietin ("EPO") in treating
renal anemia and interferon alpha for use in treating hepatitis-C. The market
for Factor VIII is greater than $3.2 billion per year (La Marie 2008), and
according to the World Federation of Hemophilia, some 400,000 people in the
world have hemophilia.
Dr. Andrew Pearlman, Chief Executive Officer of Medgenics, said:
"We are very excited to have reached this key milestone toward commercialization
of our technology. The fact that this agreement is for a new therapeutic
application of our Biopump demonstrates the versatility of our platform
technology. It further validates the belief that our platform can be applied to
help treat many chronic diseases and will attract further interest from other
major partners.The fact that a market leader in hemophilia has entered such an
agreement at this early stage testifies to the promise of the Biopump technology
for use in treating hemophilia. It reflects our mutual expectation that this
feasibility program will be successful and will lead to a definitive agreement
to complete the development and to commercialize this unique and exciting new
therapeutic option which could make a major difference in the lives of
hemophilic patients."
"Medgenics' Biopump platform technology has already achieved unprecedented
results in the sustained treatment of anemia; the only indication that we have
tested in patients to date. In a Phase I/II clinical study using our EPODURE
Biopumps to produce and deliver EPO in patients with chronic kidney disease, a
single administration of EPODURE Biopumps has been shown to provide effective
anemia treatment for up to 12 months without any need for additional EPO
injections. We believe our Biopump technology will address many of the current
challenges in healthcare and provide an important advance for the treatment of
chronic disease."
"While this first agreement is directed to the treatment of hemophilia,
Medgenics is continuing its discussions with other potential partners with a
view to signing additional agreements for other indications using different
therapeutic proteins."
- End -
For further information, contact:
+------------------------------------------------+--------------------------------------+
| Medgenics, Inc. | Phone: +972 4 902 8900 |
| Dr. Andrew L. Pearlman | |
| | |
+------------------------------------------------+--------------------------------------+
| Grayling (Financial PR - UK) | Phone: +44 7900 053 536 |
| Jonathan Shillington | jonathan.shillington@uk.grayling.com |
| Alistair Scott | |
| | |
+------------------------------------------------+--------------------------------------+
| Grayling (Investor Relations - US) | Phone: +1 646 284 9472 |
| Leslie Wolf-Creutzfeldt | lwolf-creutzfeldt@hfgcg.com |
| | |
+------------------------------------------------+--------------------------------------+
| Blomfield Corporate Finance Limited (Nominated | Phone: +44 207 489 4500 |
| Adviser) | |
| James Pinner | |
| Alan MacKenzie | |
| | |
+------------------------------------------------+--------------------------------------+
| SVS Securities plc (Broker) | Phone: +44 207 638 5600 |
| Ian Callaway | |
| | |
+------------------------------------------------+--------------------------------------+
About Medgenics:
Medgenics is a clinical-stage biopharmaceutical company developing its unique
tissue-based Biopump platform technology to provide sustained-action protein
therapy for the treatment of a range of chronic diseases. The Company currently
has three products in development based on this technology and addressing the
indications of:
- Anemia - using EPODURE, a Biopump producing erythropoietin (EPO)
- Hepatitis-C - using INFRADURE - a Biopump producing interferon-alpha (IFN-a)
- Hemophilia - using a Biopump to produce clotting Factor VIII
The Company's Phase I/II clinical trial using EPODURE to treat anemia 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 anemia
treatment in most of these 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 Anemia, Hepatitis-C, 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 US $87 billion by 2010. Other potential applications
of Biopumps producing various proteins include multiple sclerosis, arthritis,
pediatric growth hormone deficiency, obesity, and diabetes.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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