Yislim will now hold 30% of the shares of Avraham Pharmaceuticals, which will be transferred to the new holding company that Yislim is establishing in the field of biotechnology.
Application, the Hebrew University's research and development company, announced today that it is participating in a $3 million funding round by Avraham Pharmaceuticals. The round was held in collaboration with Pontifex, Clal Biotechnology Industries, the Technion Institute for Research and Development, Professor Martha Weinstock-Rozin and others. This investment is in addition to a previous investment in Avraham Pharmaceuticals, which was led by Ipsos, Pontifex and all biotechnology industries in the amount of 9 million dollars, and which was completed and reported on in April 2010. Following the current investment, Ipsos' share of shares in Avraham Pharmaceuticals will now be -30%. The shares will be transferred by Application to the new holding company that Application will establish in the field of biotechnology, where they will be one of its main assets.
Avraham Pharmaceuticals will use the new capital to promote two product development programs that are in the advanced stages of Ladostigil, a new molecule designed to treat a variety of neurodegenerative diseases. First, the company will continue with a phase II clinical trial currently underway at 20 sites in five European countries, to test the drug's effectiveness on Alzheimer's patients. Second, Avraham Pharmaceuticals intends to begin a large-scale clinical trial that will last 36 months, to test the safety and effectiveness of Ladostigil in patients diagnosed with mild cognitive impairment (MCI). The second study is expected to begin in the first quarter of 2012.
Yaacov Michlin, CEO of Amision, said, "We very much believe in Dostigil and are happy to continue the fruitful collaboration with Pontifex, Clal Biotechnology Industries and the Technion Institute for Research and Development in this investment. Based on the research of Professor Vaishtok-Rozin, Ladostigil may also be suitable for the treatment of MCI. The new investment will allow Abraham Pharmaceuticals to promote two phase II clinical studies at the same time, for two different indications."
Dr. Vincent Zorowsky, CEO of Avraham Pharmaceuticals, added, "We greatly appreciate the ongoing support of all investors, support that allows the company to advance the development of products for Alzheimer's and MCI at the same time. All of us in the company believe that in the end, patients suffering from degenerative diseases of the nervous system are the ones who will benefit the most from this investment in a drug that has been proven many times over to have a unique potential to revolutionize the treatment of these challenging diseases."
