Immunovative Therapies Ltd. is taking its subsidiary Immunovative Clinical Research Inc. (ICRI) public on Wall Street through a reverse merger with Novo Energies Corporation (Bulletin Board: NVNC) at a company value of $41.5 million.
Immunovative is developing cancer therapies. It is due to begin a Phase II/III clinical trial of its lead product, a bioengineered patented cell product AlloStim, a treatment for colorectal and breast cancer. According to Novo Energies, successful clinical development in either indication could lead to fast-track market approval and revenue potential in excess of $1 billion for each indication.
ICRI has the world-wide exclusive license for all current and future Immunovative products in exchange for monthly research payments. ICRI also has the exclusive right to manage an Expanded Access Program which allows patients access to Immunovative's experimental products through an agreement with Immunotherapy & Cancer Research Center (Thailand), Ltd., affiliated with the National Cancer Institute of Thailand. The company expects that this revenue will be enough to support operations until the next financing event. The company also expects the results of one or both of the Phase II clinical trials within 24 months.
In a filing with the SEC yesterday, Novo Energies said if it succeeds in raising $5 million, Immunovative will own 83% of the merged company, with Novo Energies' shareholders owning the rest. When the merger is closed, Novo will change its name and ticker.
Immunovative was founded by CEO Dr. Michael Har Noi. The company is developing drugs to strengthen the immune system to fight malignant tumors and to create immune memory to fight a recurrence of the cancer. The company achieved its result by reverse engineering the body's immune response known to kill tumors.
The company has conducted an US Food and Drug Administration (FDA) trial on 42 patients with colorectal cancer with a life expectancy of under two months. 20% of the patients lived for a further year and had a significant reduction in the cancer. Side effects were normal for cancer treatments.
Immunovative also has rights to other cancer killing immune system technology, which it believes will be highly effective.
Immunovative has been financed to date by private investors and grants from the Office of the Chief Scientist.
Immunovative is the second Israeli company to enter Wall Street by reverse merger this year. The first was InspireMD Ltd. (Bulletin Board: NSPR), which raised $10 million.
Published by Globes [online], Israel business news - www.globes-online.com - on May 24, 2011
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