Kadimastem Ltd. (TASE: KDST) drew a great deal of attention today after reporting that it had signed a cooperation agreement with Merck Serono for scanning drugs as potential treatments for multiple sclerosis and other neurodegenerative diseases.
Kadimastem will use its unique platform for Merck Serono, Merck's biopharmaceutical division, in the scanning of potential new drugs.
Kadimasten has developed technologies for stem cell differentiation for oligodendrocytes, cells required by the brain in order to produce myelin for insulation of nerve fibers. In multiple sclerosis, oligodendrocytes are destroyed by the immune system. Kadimasten also has the capability to generate astrocytes from stem cells. Astrocytes are support cells that have been found to be involved in neurodegenerative diseases.
Soon after the signing of the contract, Merck will make an initial payment to Kadimasten; additional payments will be paid according to milestones that have been set. The deal is consistent with Kadimasten's strategy of generating revenue in the short term and tightening its connections with major international pharmaceutical firms for drug scanning projects.
Kadimasten CEO Yossi Ben-Yossef said, "Cooperation with Merck strengthens the fruitful connection between the two companies, and constitutes a vote of confidence in Kadimasten and its innovative technology. The fact that we recently signed a contract for drug scanning with another major pharmaceutical firm indicates the scientific strength and maturity of our technology. It reflects growing realization that we are able to provide a significant addition to the drug development process and to shorten their development times."
Published by Globes [online], Israel business news - www.globes-online.com - on August 3, 2014
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