Therapeutics co AtoxBio raises $3.25m

The company will use the funding for a Phase II clinical trial to test effectiveness of its treatment for necrotizing soft tissue infections.

Sources inform "Globes" that AtoxBio Ltd. has raised $3.5 million to finance a Phase II clinical trial for the effectiveness of its drug AB 103 for necrotizing soft tissue infections (NSTI).

The financing round was co-led by a private US-based investor and Dutch venture capital fund Esperante, which invests in drug development companies and whose other investments include Arno Therapeutics Inc. founded by an Israel - Arie Belldegrun. AtoxBio's latest financing round also includes an investment from an undisclosed US source.

AtoxBio has already begun its clinical trial at seven US medical centers with the trial scheduled for completion by the end of 2012. The drug being developed has orphan status because there are no other effective treatments available and thus qualifies to be fast tracked to the market and enjoy longer exclusivity if sells ever begin.

AtoxBio CEO Dan Teleman said that the company plans to complete a second closing of this financing round in early 2012.

Esperante managing director Dean Slagel said, "Atox Bio is one of the most exciting companies we have seen to date. AB103 shows promise across a broad range of indications, and this investment reflects our appreciation of the excellent scientific and clinical data package generated by the Atox Bio team."

Atox Bio will be included as one of the portfolio companies of Integra Holdings, a holding company formed by Yissum, the technology transfer company of the Hebrew University of Jerusalem.

AtoxBio was founded by Yissum based on the research of the Hebrew University's Prof. Raymond Kaempfer. The company has rased $4 million prior to the current round mainly from US philanthropist Newton Becker as well as government funds and other philanthropists.

Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) was once in talks to invest in AtoxBio but negotiations did not bear fruit.

Published by Globes, Israel business news - - on December 19, 2011

© Copyright of Globes Publisher Itonut (1983) Ltd. 2011

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