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Media Coverage: 2005-6 | 2003-4 | 2001-2 | 1998-2000
Fri., February 18, 2005 - HA'ARETZ
Proneuron spine treatment attracts investors
By Ora Coren
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Benny Ze'evi, left, of Tamir Fishman,
which holds 10 percent of the Nes Tziona-based
company, with Proneuron CEO Nir Nimrodi. |
The Proneuron biotechnology company is receiving a lot of attention from investors nowadays. It currently has three therapies in relatively advanced stages of development.
The most advanced is now being tested on humans, and is for the treatment of spinal cord injuries. The second therapy, for the treatment of brain injuries, is due to enter human trials this year in cooperation with Teva, and Proneuron plans to apply for permission to start testing its stroke treatment on humans in four months.
The moving spirit behind Proneuron's development is Prof. Michal Schwartz of the Weizmann Institute in Rehovot, whose approach is to use the body's immune system to treat diseases of the central nervous system. The company believes that this approach could produce cures for diseases such as stroke, paralysis, Alzheimer's and Parkinson's.
CEO Nir Nimrodi is enthusiastic when describing the results of the first human trial of its ProCord therapy. "Five patients with total spinal injury regained the ability to feel throughout their body. Three of them are also capable of moving some of the principal muscle groups under the spinal column."
The treatment uses white blood cells (macrophages), a part of the body's immune system that promotes new growth of most types of tissues, including in the peripheral nervous system, but not in the central nervous system. The cells are taken from peripheral areas of the patient's own body, treated with a proprietary process developed by the company, and then injected directly into the patient's spinal cord.
"What's good for the spine is not good for the brain, so for the treatment of brain injuries, we developed a special concept," Nimrodi said. This treatment is also based on the body's immune system. It uses antigens - proteins that spur the immune system to manufacture antibodies against them - to prod the immune system to send more healing cells, T cells, to the brain than it would normally.
The antigen that Proneuron
chose is Cop-1, which is also used in Teva's best-selling
Copaxone multiple sclerosis drug - hence Teva's decision to
collaborate in the testing phase. Proneuron's treatment
produced improvement in animals with ALS, Huntington's,
Parkinson's, Alzheimer's and glaucoma.
"We expect that by the end of
2005, Teva will begin a major [human] trial on at least one
disease," says Nimrodi. "They have not yet decided which
disease; the decision will be made based on assessments of
which has the greatest chances of success."
Proneuron plans to apply to
the Israeli and American drug authorities for permission to
start human trials of the third therapy, for stroke, in
about four months, Nimrodi says. "We hope it will advance to
clinical trials this year, and we will seek a partner for
it."
Teva is not a candidate for
partnership on this treatment, since the company prefers to
diversify its partnerships.
Proneuron has received $20
million from Teva in a combination of cash and shares and it
has raised an additional $20 million from other investors
since its founding in 1996. It is planning another financing
round in the second half of this year; the funds are
expected to come from existing shareholders for the most
part, but it hopes to attract at least one new investor.
"It's always good to inject new blood into the company in
every financing round," Nimrodi says.
The company's founding
investor is the American investment firm Hudson Investment
Group. In addition, each of the following holds less than 10
percent of Proneuron: AG Tech, Pitango, Infinity, Giza,
Tamir Fishman, Teva, the Weizmann Institute and the
company's employees. Its last financing round valued the
company at more than $60 million.
Benny Ze'evi of Tamir Fishman
says that treatments like Proneuron's are generally paid for
by insurance companies, so they are priced according to how
much it would cost the insurer to care for the patient
without using this treatment.
"To care for a man with a
spinal injury without medical treatment currently costs the
insurer some $2 million," Ze'evi says. "Therefore, there is
no doubt that the insurer would agree to pay hundreds of
thousands of dollars for a treatment that would improve the
patient's situation."
Proneuron Biotechnologies is engaged in research
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related to spinal cord injuries and paralysis cure.
