Sources inform ''Globes'' that D-Pharm Ltd., which is development drugs for treating brain disorders, including epilepsy and strokes, is holding a $10 million financing round. The main investors are new investors Israel Healthcare Ventures Ltd. and Pitango Venture Capital, Clal Biotechnology Industries Ltd. (CBI) (the largest shareholder in the company with a 37% stake), and other existing shareholders. According to IVC Research, these include Care Capital, Morgan Stanley and other venture capital funds.
D-Pharm is conducting Phase IIb clinical trials on its DP-b99 drug for strokes. DP-b99 binds metal ions excreted by brain cells during strokes, and which is considered a major cause of cell death. Binding these metal ions protects cells and increases cell survivability.
The trial results will be known in a few months. Phase II clinical trials are critical for a drug development company. If the results are good, a company will obtain a valuation of tens of millions of dollars, even hundreds of millions. There are no drugs for treating strokes or protecting cells on the market; only drugs for thinning blood in order to reduce blood clots in the brain after the damage has been done.
D-Pharm president and CEO Dr. Alexander Kozak founded the company in 1993. A graduate of Incentive Incubator (formerly Orit), the company has raised $40-50 million to date from US and Israeli venture capital funds.
Published by Globes [online], Israel business news - www.globes.co.il - on May 11, 2006
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