News blog
Medgenics Inc
- BY: Andrew Hore |
- POSTED: 16/08/2010 |
A contribution from its new major pharmaceutical partner helped Medgenics Inc cut its loss in the first half of 2010.
Israel-based Medgenics is a biopharmaceutical company, which has developed a technology that could replace regular injections as a treatment for various ailments. The so-called Biopump technology has produced positive results in early trials.
The pharma company contributed $1.72m to offset Medgenics’ research and development costs in the first half but that is partly an advanced payment. The funding is for preclinical development of a treatment of Haemophilia and there is an option to proceed to a commercial agreement.
The company’s loss fell from $2.23m to $550,000.
Medgenics says the initial deal has made other pharma companies sit up and take notice of the Biopump technology. A number of companies have entered discussions with Medgenics.
Medgenics has raised £836,000 at 5p a share during May. At 8.75p a share, Medgenics is valued at £13.5m. There was $1.36m in the bank at the end of June 2010. The operating cash outflow was $1.18m in the first half. Additional funding will be required whether it is through share issues or from partners.
The appointment of Nomura Code as joint broker will help to raise the profile of the company with institutional investors.
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