Amorphical signs China calcium capsule deal

medical research image: Shutterstock
medical research image: Shutterstock

CEO Yossi Ben discovered the company's technology while raising blue crabs.

Amorphical, which produces amorphous calcium capsules (more accessible to the body than crystal calcium), has announced the signing of a marketing and distribution agreement in China one week after obtaining marketing approval for its product in that country. The deal was signed with Chinese government company China Meheco, which has obtained exclusive marketing rights to the product in China.

Amorphical estimates that it will post a few million dollars in revenue from the deal in 2017 (the plan is to launch the product in September), $20-40 million in 2018, and more than that in subsequent years. The company, which already has sales and marketing activity in Chile, Vietnam, and Israel, already finances most of its activity by itself. The main investor in the company is CEO Yossi Ben.

Amorphical currently has 60 employees: 40 in its production facility in the Arava and the rest in its research laboratories. Ben previously said that he would invest $20 million in the plant and employ 200 workers by 2018, but progress in the plan was slower than expected. Now, following the signing of the agreement, and provided that everything goes according to plan, Amophical plans to expand its staff by hiring dozens more employees. The company reported several weeks ago that it was in the midst of a financing round at a company value of $110 million.

As of now, Amorphical is selling its product in Israel, Asia, and Latin America as a food supplement. In the US, Europe, and Japan, however, the company plans to sell the product as a drug. Amorphical recently began a Phase II/III trial for treatment of orphan disease Hypoparathyroidism (inadequate activity of the parathyroid gland) - the same problem addressed by Entera Bio, which recently filed documents for a Nasdaq offering. Ben said, "Our drug competes with a drug made by Shire, which it acquired for over $5 billion. According to our initial trial, our product is better."

Ben revealed that amorphous calcium was also being examined as a drug for treatment of cancer. So far, it is being researched on animals and a number of cancer patients as a compassionate treatment, and has shown potential for suppressing excessive multiplication of the cells and channeling them back towards normal activity.

Amorphous calcium was developed by Ben, who raised blue crabs for decoration, and discovered the mechanism for creation of amorphous calcium used by the crabs in order to build their shells very quickly. Ben discovered a way of imitating this process synthetically, and created Amorphical on that basis.

Arava Regional Council head Eyal Blum says, "Yossi Ben has realized a dream. His curiosity in researching the life of the blue crab, which he was raising in order to market it for decoration in aquariums around the world, like many farmers here, has led to a medical breakthrough that is winning worldwide praise."

Published by Globes [online], Israel Business News - - on August 3, 2017

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017

medical research image: Shutterstock
medical research image: Shutterstock
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