TIDMMEDG 
 
RNS Number : 1544I 
Medgenics Inc 
05 March 2010 
 

 
 
 
For release: 5 March 2010 
 
                                Medgenics, Inc. 
 
                         ('Medgenics' or the 'Company') 
 
            MEDGENICS SUCCESSFULLY CLOSES ADDITIONAL FINANCING ROUND 
 
Medgenics (AIM: MEDG and MEDU), the company that is developing a novel approach 
to the manufacture and delivery of therapeutic proteins continuously in patients 
using their own tissue, is pleased to announce that it has successfully closed 
an additional round of financing, raising gross proceeds of GBP726,168. Pursuant 
to a board resolution passed today, the Company has allotted and issued 
(credited as fully paid), conditional upon admission to trading on AIM: 
 
?    14,273,000 new common shares of par value of US $0.0001 each in the Company 
("Common Shares") at a price of 5 pence per Common Share; and 
?    a further 192,591 Common Shares at a price of 6.5 pence per Common Share to 
certain of the directors and their related parties, as announced on 8 February 
2010. 
 
Application will be made by the Company for these Common Shares to be admitted 
to trading on AIM and dealings are expected to commence at 8am on 11 March 2010. 
 
Following the admission to trading on AIM of these 14,465,591 new Common Shares, 
the total number of Common Shares in issue will be 137,914,618*. The resultant 
directors' interests* and significant shareholdings* will be as follows 
(excluding interests in warrants, options and debentures as previously 
announced): 
 
+--------------------------------+--------------+------------+ 
| Name                           |    Number of |       % of | 
|                                |       Common |     Issued | 
|                                |       Shares |      Share | 
|                                |              |   Capital* | 
+--------------------------------+--------------+------------+ 
|                                |              |            | 
+--------------------------------+--------------+------------+ 
| The Executors of Lord Leonard  |   18,509,725 |      13.4% | 
| Steinberg's estate             |              |            | 
+--------------------------------+--------------+------------+ 
| Joel Kanter (director)         |   14,126,635 |      10.2% | 
| including related interests    |              |            | 
+--------------------------------+--------------+------------+ 
| CIBC Trust Company (Bahamas)   |    7,605,985 |       5.5% | 
| Ltd. **                        |              |            | 
+--------------------------------+--------------+------------+ 
| Alta California Partners III   |    7,412,472 |       5.4% | 
| L.P.                           |              |            | 
+--------------------------------+--------------+------------+ 
| Platinum Montaur Life Sciences |    7,190,208 |       5.2% | 
| I, LLC                         |              |            | 
+--------------------------------+--------------+------------+ 
| Vision Opportunity Master Fund |    7,094,851 |       5.1% | 
| Ltd.                           |              |            | 
+--------------------------------+--------------+------------+ 
| Koor Corporate Venture         |    5,393,821 |       3.9% | 
| Capital, L.P.                  |              |            | 
+--------------------------------+--------------+------------+ 
| UK Private Healthcare Limited  |    5,000,000 |       3.6% | 
+--------------------------------+--------------+------------+ 
| Chicago Investments Inc. **    |    4,400,807 |       3.2% | 
+--------------------------------+--------------+------------+ 
| Andrew Pearlman (director)     |    1,235,019 |       0.9% | 
+--------------------------------+--------------+------------+ 
| Eugene Bauer (director)        |      143,832 |       0.1% | 
+--------------------------------+--------------+------------+ 
 
The percentage of Common Shares not in public hands will be 25.9%* 
 
Note 
* Excluding any Common Shares issued pursuant to the block admission between 4 
December 2009 and the date of this announcement. 
** Included within the interests of Joel Kanter, a director of the Company 
 
The directors believe that these additional funds will enable the Company to 
start the recruitment and treatment of further patients under its ongoing phase 
I/II anaemia trial and to further develop partnering initiatives in relation to 
its key current and proposed product candidates. 
 
The Company now plans to use the proceeds from this successful fund raising to 
resume its current anaemia trial in higher dose groups, starting in the second 
quarter of 2010, using EPODURE Biopumps producing the therapeutic protein 
erythropoietin (EPO), which is the standard injected protein for treatment of 
anaemia with a US$12bn value global market.  This follows the recent 
announcement of the Company's first significant pre-clinical development and 
option agreement with a major international biopharmaceutical company to apply 
the Company's core Biopump tissue technology to treat a different major chronic 
disease, haemophilia, under which the Company has already received $2.6million 
and expects to receive a further $1.4million by the end of 2010. The Company 
also expects to receive a further $1.3m of financial support during 2010 from 
the Israeli Office of the Chief Scientist and the directors are confident that 
these non-dilutive sources of finance will cover a significant portion of the 
Company's 2010 anticipated expenditure. 
 
So far, seven patients have been treated in the phase I/II fixed-dose anaemia 
trial using a single administration of the EPODURE Biopumps.  This single 
treatment is intended to replace months of frequent EPO injections now used in 
standard practice. To date six patients have received EPODURE Biopumps producing 
EPO at the lowest recommended dosage and one patient has received EPODURE 
Biopumps producing EPO at the next dosing level.  EPO was successfully delivered 
by the treatment in all seven patients, with even the lowest dose causing the 
levels of haemoglobin in most patients to be sustained for months within the 
target range without any EPO injections.  In one patient the haemoglobin level 
has been stabilised in the range for more that 16 months without requiring any 
of the weekly EPO injections he had received for more than a year prior to 
EPODURE treatment.  Patients have found the treatment satisfactory and there 
have been no adverse events reported. The Company has now included some more 
detailed data on these trials on its website which can be found at 
www.medgenics.com. 
 
In the continuation of this trial, additional patients will be treated using 
higher fixed dosage levels.  This will be accomplished by administering more 
EPODURE Biopumps, titrated to deliver higher daily levels of EPO than with the 
first patients in the trial.  This is designed to show dose response for EPODURE 
in a similar manner to that known for injected EPO, where higher doses result in 
statistically higher haemoglobin levels, even though dosage response and 
requirements vary from patient to patient.  The treatment of additional patients 
in the trial is expected to provide substantially more data to further 
corroborate the strong results to date, and to show that this positive 
therapeutic effect will occur for 6 months or longer. 
 
As this is an open trial, the Company anticipates that it will continue to 
provide updates as patients are treated and followed throughout 2010.  The 
Company further anticipates additional licensing activity and new programs in 
the product pipeline during 2010. 
 
Andrew Pearlman, CEO of Medgenics, commented: 
 
"We have already reported that our tissue based Biopump technology produces and 
delivers therapeutic proteins continuously over many months and in a more 
natural manner than serial injections. This trial has shown exciting and 
unprecedented clinical results in treating anaemic patients with EPODURE 
Biopumps, which continuously produce EPO.  We now aim to demonstrate that higher 
doses of EPODURE result in higher haemoglobin levels. 
 
With these additional funds we can now proceed to recruit and treat patients at 
higher doses in this trial. This will also give us important information to help 
us develop ways to titrate the dose to meet individual needs of the patient in 
future clinical use. 
 
Furthermore, the recent agreement with a major pharmaceutical company for 
haemophilia, as well as other active partnering interest, endorses the Board's 
view that the Company's Biopump has many potential commercially exploitable 
applications. 
 
We believe that the Biopump, once fully developed, will represent the ultimate 
in personalised medicine, offering a new and cost effective way to both 
manufacture and deliver therapeutic proteins directly in the patient on an 
extended basis and thus provide a better and safer protein therapy compared to 
serial injections and other alternatives and we look forward to updating the 
market with further positive news throughout 2010." 
 
 
 
 
 
For further information, please contact: 
 
Andrew Pearlman                                               + 972 4 902 8900 
CEO 
Medgenics, Inc 
 
Mike Wort / Anna Dunphy                                   + 44 207 861 3838 
De Facto Communications 
 
James Pinner / Derek Crowhurst                          +44 207 444 0800 
Blomfield Corporate Finance 
 
Ian Callaway / Alex Mattey                                 +44 207 638 5600 
SVS Securities plc 
 
Notes to Editors: 
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. Biopumps are made 
using needle biopsies taken from the lower layer of the patient's skin under 
local anaesthetic, and processed during 10-14 days to become 30 mm long tissue 
biofactories producing the required protein.  The requisite number of Biopumps 
are injected under the patient's skin to provide sustained protein production 
and delivery for many months. The Company is developing the Biopump to provide 
substantially greater safety and reliability in protein treatment in a more cost 
effective manner than experienced with the existing injected protein therapies. 
Medgenics currently has three products in development based on this technology 
and addressing the indications of: 
 
 - Anaemia - using EPODURE, a Biopump producing erythropoietin (EPO) 
- Hepatitis-C - using INFRADURE - a Biopump producing interferon-alpha (IFN-a) 
- Haemophilia - using a Biopump to produce clotting Factor VIII 
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 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 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 $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 
 
 IOEUGUBGWUPUGGA 
 

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