Cancer therapy co KAHR Medical raises NIS 10.4m

Hadasit Bio's stake in KAHR Medical will fall to 55%, Recipharm CEO Thomas Eldered will own 5%, and Sanofi-Aventis will keep its 20% stake.

Cancer and autoimmune protein therapies developer KAHR Medical Ltd. has raised NIS 10.4 million, at a company value of NIS 53 million, after money. Recipharm CEO Thomas Eldered led the round, with NIS 8 million, joined by KAHR's current shareholders Hadasit Bio Holdings Ltd. (TASE:HDST; Bulletin Board: HADSY), with NIS 400,000, and the investment arm of Sanofi-Aventis SA (Euronext: SAN; NYSE: SNY), with NIS 2 million.

Following the investment, Hadasit Bio's stake in KAHR Medical will fall from 70% to 55%, Eldered will own 5%, and Sanofi-Aventis will keep its 20% stake.

Prof. Mark L. Tykocinski founded KAHR Medical, which is run by CEO Dr. Noam Shani. The company uses proprietary Signal Converter Proteins (SCP) technology to develop third-generation biological drugs, a unique class of proprietary fusion-protein molecules, or chimeric molecules, with two functional ends, which can convert one inter-cellular signal to another. The company has two drugs in preclinical trials.

In June 2011, KAHR Medical extended its cooperation agreement with Sweden's Cobra Biologics Holding AB to develop KAHR 102 drug. Two months earlier, it raised $3 million in its first financing round - $2 million from Sanofi-Aventis and $1 million Hadasit Bio, which converted $2 million in convertible loans into equity.

Shani said, "I believe that the partnership with Mr. Eldered, who has founded and manages one of Europe's leading drug production companies, will bring substantial advantages to the company. The follow-on investment by Sanofi, which is maintaining its stake in the company, is unquestionably a vote of confidence in the company, its management and its technology."

Hadasit Bio CEO Ophir Shahaf said, "KAHR Medical's financing round is a direct continuation of the acceleration in activity over the past two years. During this time, we have brought investors with a direct link to their areas of activity and with great strategic value to five of our companies."

Hadasit Bio is a subsidiary of Hadasit - the Technology Transfer Company of Hadassah Medical Organization . Hadasit Bio's share price has been halved since it dual listed on the Bulletin Board on Wall Street last year.

Hadasit Bio's share price rose 0.8% by mid-afternoon today to NIS 0.49, after closing at $2.67 on Wall Street on Friday, giving a market cap of $11.7 million.

Published by Globes [online], Israel business news - www.globes-online.com - on June 18, 2012

© Copyright of Globes Publisher Itonut (1983) Ltd. 2012

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