Israeli start-up Proneuron, one of the most promising companies in the bio-med market has ceased active operation. The company still employs its CEO and a number of business development employees. It also maintains intellectual property (IP) which in the future could create revenue for the legal entity Proneuron and afford it renewed life as an active company. At this point however, no R&D work is being carried out, its laboratories were closed and the equipment sold off.
Proneuron CEO Nir Nimrodi told "Globes" yesterday "It's not accurate to say that the company is closed. The company did indeed cease all R&D activity, closed its labs and even though it still retains several clean rooms, they are inactive. However, it still has a large contract with Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) and an additional molecule which we are seeking to commercialize.
In the past, Nimrodi had stated that the company was looking to increase its presence in the US in order to commercialize its IP, but this move does not currently look probable.
The US Food and Drug Administration (FDA) website reports that the phase II trials in the company's flagship independent product Prochord has been suspended, meaning that no further patients are being recruited for the yet unfinished trial. This contradicts Nimrodi's claim that the trial was completed and the company is awaiting results.
Published by Globes [online], Israel business news - www.globes.co.il - on November 8, 2006
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