Pharmaceutical company Entera Bio, a subsidiary of DNA Biomedical Solutions Ltd. (TASE: DNA), has raised $7.5 million in a loan convertible into shares. Pontifax led the round, with participation from private investors, many of whom are identified with immunotherapy company Kite Pharma: founder and CEO Arie Belldegrun (a director in Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA)), director and TPG founding partner David Bonderman, and director and Two River cofounder and managing director Joshua Kazam. Following the announcement, DNA Biomedical's share price jumped 5% on Thursday and 3% more today, adding NIS 42 million to the company's market cap. DNA owns 51% of Entera Bio
Entera Bio is developing orally administered drugs as a replacement for injectables and IVs. Its leading drug is a product for the treatment of hypoparathyroidism (not to be confused with hypothyroidism) - an orphan disease that can result from an operation, tumor, or degenerative brain disease. It affects the level of calcium in the body, and in particular prevents recovery from a lack of calcium. It can be treated with Vitamin D or calcium, but these treatments have side effects.
Entera Bio believes that the material it previously began to develop as an orally administered drug for treatment of osteoporosis can also be effective in treating the results of hypoparathyroidism. The company's drug, PTH, is based on an existing drug for treatment of osteoporosis, but with addition of Entera Bio's technology, which makes it possible to take the drug orally. Entera Bio hopes to begin Phase III trials for PTH soon, after the product was tested in Phase II trials.
Pontifax and Zeev Bronfeld cooperating again
The current controlling shareholders in DNA Biomedical are Zeev Bronfeld (15.5% - Bronfeld and Pontifax were previously partners in the Biomedix Incubator and its subsidiaries); Oramed (Nasdaq: ORMD), from which some of the company's technology was purchased (8.7%); private investor Menahem Raphael (6%); DNA Biomedical CEO Yehonatan Malca (5.8%), and Excellence (5.3%).
The payments on DNA Biomedical bonds in the coming year total $8.1 million, so it appears that the company will do everything it can to enhance the value of Entera Bio quickly. DNA Biomedical had $4.9 million in cash as of the end of March 2016, and has three other subsidiaries.
Published by Globes [online], Israel business news - www.globes-online.com - on July 24, 2016
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