Press Releases
May 28, 2001
Neurotech raises Euro 35 million in France's largest biotech
private funding this year
Paris, May 28 2001 - Neurotech S.A., a specialist in the discovery,
development and commercialization of cell-based therapies in the
eye and the central nervous system (CNS), announces today that it
has raised Euro 35 million in a pre-IPO funding round. The additional
funds will allow Neurotech to progress several key projects towards
clinical trials.
Joint lead investors in this round of funding were Apax Partners
and Merlin Biosciences. Other new investors are Westdeutsche Landesbank
Girozentrale, ABN Amro, Rothschild, and AGF Innovation. Existing
investors (3i Plc, GIMV, Atlas Ventures, CDC Innovation, Sofinnova,
Sudinnova, Banque de Vizille, Banexi, Private Equity Holdings and
IMH) also participated.
"To achieve this level of funding in the current climate is
a clear endorsement of Neurotech's technology and business strategy,"
said Dr Tom Shepherd, CEO of Neurotech. "It illustrates an
increasing trend for European companies to raise more significant
amounts of capital as they move into clinical trials instead of
relying on drip-feed financing. We are delighted to have the support
of such a range of quality investors in the biopharmaceutical field."
The eye and central nervous system have large areas of unmet medical
need. This is due not only to the complexity of the diseases, but
also to the presence of the blood-eye and blood-brain barriers,
which limit local access of orally or systemically applied molecules.
Medicaments can be injected directly into the brain or eye, but
this is an impractical approach if regular administration is required.
It is primarily for this reason that protein therapeutics have never
been developed in the eye. Cell therapy, either encapsulated or
naked, allows the continuous local production and release of therapeutic
molecules from living cells following a single administration. In
addition the eye is an optimal site for cell therapy because it
is easily accessible, can be visualised directly, and consists of
a localised space with a small internal volume.
Neurotech's core technology uses genetically modified eye and CNS
derived cell lines, either encapsulated as a means of locally delivering
proteins over long periods of time, or as a cell therapy to replace
damaged cells. The company has a strong portfolio of cell-based
therapies in development to treat CNS and eye diseases. Neurotech's
research success has been built up on solid collaborations and alliances
with leading academic institutions such as the Institute of Ophthalmology
in London, the Kennedy Krieger Institute in Baltimore, and the Foundation
Fighting Blindness.
The company has recently successfully concluded pre-clinical trials
in the field of Retinitis Pigmentosa and Age-related Macular Degeneration.
The Euro 35 million will allow Neurotech to complete a number of
agreements to bring new technologies into the company and to commence
additional clinical trials in three main areas:
- Retinitis Pigmentosa
- Age-related Macular Degeneration, the main cause of blindness
in adults
- neovascular diseases of the eye
"Neurotech has a highly innovative and competitive approach
to addressing neurological and ophthalmic disorders, which form
a large market of unmet medical need," said Mark Clement, Managing
Director of Merlin Biosciences" European Activities, who will
be joining the Neurotech board. "The company has an excellent
blend of research and development expertise based both in Evry,
France, and Rhode Island, US, together with strong product offering.
In particular the company's proprietary encapsulated cell technology
(ECT), constitutes one of the few competitive solutions to eye diseases
and offers a delivery mechanism for broader CNS disorders. Furthermore,
the management team under Tom Shepherd has the proven business and
product development experience to make Neurotech a world leader
in its field."
"Neurotech, which I have been watching since its start up,
has made highly significant progress, especially when it acquired
the encapsulated cell technology (ECT), and when it broadened its
focus to eye diseases, where there are clearly unsatisfied needs
and huge market potential," said Dr Laurent Ganem, General
Partner of Apax Partners, who will become a board member of Neurotech.
"With this substantial financing, we are very pleased to support
Tom and his team in the further development of the company."
About Apax Partners:
Apax Partners is one of the world's leading private equity investment
groups with Euro 12 billion under management and with 160 investment
professionals operating in ten countries across the world. Healthcare
is one of its five chosen global growth sectors. Apax Partners Funds'
investments include NicOx (F) - Synt:em (F)- Hybrigenics (F) - IDM
(F) - Entomed (F) - Versicor (USA) - Lexicon (USA) - Ribotargets
(UK) - Microscience (UK) - Wilex (Ger) - Metagen (Ger) - D-Pharm
(Isr). For more information, please visit www.apax.com
About Merlin Biosciences:
Merlin Biosciences is a broad-based venture capital and advisory
company dedicated to the life sciences sector. Merlin Biosciences
has one of the largest, most experienced biotech investment teams
in Europe and is currently advising funds amounting to over Euro
400 million. Merlin supports companies in all stages of their development
- from early stage, through pre-IPO and post-flotation and has an
extensive network of advisers and experienced strategic partners.
Merlin Biosciences advises three funds which encompass this spectrum
of development: The Merlin Biosciences Fund, Finsbury Life Sciences
Investment Trust, and The Merlin Fund. Merlin Biosciences is regulated
by IMRO. For more information, please visit: www.merlin-biosciences.com
About Neurotech:
Neurotech S.A. is a French based biotechnology company developing
cell therapy and protein delivery products in the eye and brain.
Neurotech's Encapsulated Cell Technology (ECT) allows, for the first
time, the long term administration of protein drugs in the eye and
CNS. In addition to the ECT, Neurotech has a portfolio of cell therapy
products in development to treat CNS and eye disease, one of which
is in Phase I/II studies in France. Neurotech has R&D operations
in France and the United States and is supported by an international
group of investors including: Merlin Biosciences, Apax Partners,
3i Plc, Atlas Venture, Westdeutsche Landesbank Girozentrale, GIMV,
CDC-Innovation, Sofinnova, ABN Amro, AGF Innovation, Rothschild,
Banexi, IMH, Private Equity Holdings, Sudinnova, and Banque de Vizille.
For further information please contact :
Bernard Davitian, CEO
Neurotech
Phone: 1 401 333-3880 x3136
Email: b.davitian@neurotech.fr
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