The grant will finance further research and clinical development of Medgenics’s proprietary tissue-based Biopump platform technology for the treatment of anemia and hepatitis.
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/By Ilan Shavit /
Medgenics, Inc. (NYSE MKT: MDGN and AIM: MEDU, MEDG) a developer of a novel technology for the sustained production and delivery of therapeutic proteins in patients using their own tissue, today reported that its wholly owned subsidiary, Medgenics Medical Israel Ltd. (MMI), was awarded a government grant of up to NIS 6.7 million (approximately USD 1.9 million), from the Office of the Chief Scientist (OCS) at the Ministry of Industry, Trade and Labor of Israel.
The grant will be used to cover R&D expenses for the 12-month period from December 2012 through November 2013 to support further research and clinical development of the Company’s proprietary tissue-based Biopump™ platform technology with respect to the treatment of anemia and hepatitis.
The OCS awards grants to companies from various industries in Israel to foster technological innovations. Recipient selections are based on multiple criteria including the uniqueness of a company’s technology, and the potential market it addresses, plus the robustness of the company’s business including financial position, R&D capabilities and management experience.
Under the terms of the OCS grant, MMI will repay the grant in full, plus interest, through royalties on revenue received from commercializing the developed technology. The payment of royalties is contingent on such revenues and, in the absence of such revenues, no royalty payments to the OCS are required.
“We are delighted to have been selected to receive this non-dilutive funding from the Israeli OCS and appreciate the continued support. This is our seventh consecutive grant from the Israeli OCS. These grants have been instrumental in furthering the development of our technology and support us in advancing our clinical trials in the United States and Israel, ” stated Andrew L. Pearlman, Ph.D., President and Chief Executive Officer of Medgenics.
Medgenics is developing and commercializing Biopump™, a proprietary tissue-based platform technology for the sustained production and delivery of therapeutic proteins using the patient’s own tissue for the treatment of a range of chronic diseases including anemia, hepatitis, among others.