Hadasit Bio-Holdings, Ltd. (TASE: HDST) announced that it will invest $1 million in ConjuGate, Ltd., which is developing a platform to neutralize the negative side-effects of drugs that are already on the market. This will expand Hadasit’s portfolio of companies from 9 to 10.
ConjuGate, which builds on the research of Prof. Itzchak Polachek of the Hadassah–Hebrew University Hospital in Ein Karem and Prof. Abraham Domb of the Hebrew University of Jerusalem, is developing a pioneering technological platform than can bind polymers to existing drugs. This makes it possible to improve key parameters of the drug, including stability, solubility, and shelf life, and especially to neutralize negative side-effects such as toxicity. As a result, the dosage can be increased or the drug can be administered to sensitive groups such as children, the elderly, and pregnant women. The drugs maintain their effectiveness and the company can receive new patents for them, and also enjoy a shorter development path toward marketing or a deal with a potential partner.
The company’s lead product is meant to deal with fungal infections, a common problem during hospitalization and especially among cancer patients, whose immune system may be compromised by chemotherapy (see market size data in the attached graph—in 2007: more than $6 billion). The drugs currently on the market are highly effective, as noted, but their side-effects including renal infections. This is why the company’s solution is so important.
According to Hadasit CEO Ophir Shahaf, “we are delighted to expand the current potential to add value for our stockholders. Our close relationship with Hadasit, the technology transfer company of Hadassah Hospital, and the access to the dozens of companies that work under its aegis make it possible for us to constantly check the companies’ progress, so that we can identify those with the greatest potential for success. In the present case, after a protracted investigation of ConjuGate’s technology, including the patent situation, potential for commercialization, management team, and legal and financial situation, we decided to invest in the company and add it to our portfolio, with the goal of beginning Phase I clinical trials before the end of the current year. In addition, thanks to our accumulated experience and the capacity of our experienced management team, we believe that we will soon be able to sign agreements with strategic partners.”
In the current round of investment, a total of $1.8 million was injected into ConjuGate—$1 million from HBL and $800,000 by other investors, including one from England. Half of the amount will be transferred when the deal is closed; the rest will be transferred in two installments, as technological milestones defined in the agreement are reached. When the deal is complete HBL will hold about 30% of the equity in ConjuGate. In addition, HBL will nominate two directors to its board.
ConjuGate is a start-up company operating in the Ofaqim High-Tech Ventures technological incubator, which was taken private by the Capital Point Group.
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