Tamir Fishman Ventures invests $5m in Proneuron Biotechnologies

Proneuron has completed the raising of over $18 million during the past seven months.

Globes, 11 Jul 04   12:10

Tamir Fishman Ventures has invested $5 million in Proneuron Biotechnologies, in the form of a long-term convertible note.

Proneuron is a privately held biopharmaceutical company developing products for the medical treatment of spinal cord injuries and other disorders of the central nervous system (CNS). The company was founded in 1996 based upon the research of Professor Michal Schwartz of the Weizmann Institute. Scwartz demonstrated the role of immune response in normal and pathological conditions in the CNS.

Proneuron's products are currently being evaluated in several clinical studies in the US, Belgium, and Israel. The products include ProCord, an experimental procedure for complete spinal cord injuries, and a Phase I/II program of Cop-1 for the treatment of glaucoma and other neurodegenerative diseases. The Cop-1 trial is being managed by Teva (Nasdaq:TEVA) as part of the strategic collaboration between Teva and Proneuron for the development and commercialization of the product for various neurodegenerative indications. Proneuron is also developing PN277 for the treatment of additional neurological diseases.

Proneuron lead candidate ProCord (autologous incubated macrophages) is currently being studied in an international, multi-center, randomized-controlled, FDA approved Phase II trial in Israel and in the US. ProCord is manufactured through a proprietary process at specially designed cell processing centers worldwide. In Israel, the cell center is located at Proneuron’s R&D facilities in Ness Ziona. Operational cell centers in the US include one in Denver and one in Hackensack, New Jersey. Others, including one in Atlanta, are anticipated throughout 2004 and 2005.

It is estimated that there are some 35,000 cases a year in the developed countries of complete spinal cord injuries. The annual cost of treating these patients is $200,000-500,000 each.

“Proneuron is one of Israel most advanced biotechnology companies. With two products in clinical development, it is a candidate to be the leading cell therapy company for CNS diseases in the world. After an intriguing scientific and business learning process, we came to realize the importance and the significance of the benefits that Proneuron's technology could offer patients with complete spinal cord injuries as well as other victims of a variety of CNS disorders. Including our investment, Proneuron has now raised more than $18 million in the last seven months. The other $13 million or so was secured from a variety of sources, including licensing arrangements, demonstrating its effective business model,” said Michael Elias, Managing General Partner at Tamir Fishman Ventures. "

"Tamir Fishman Ventures is a leading venture capital fund. Today’s announcement is an important milestone in Proneuron’s history and will accelerate the development of the company’s innovative medical, technological and business vision,” said Proneuron CEO Nir Nimrodi.

Published by Globes [online] - www.globes.co.il - on July 11, 2004