Medgenics Inc. (AIM:MEDG; NYSE: MDGN), which develops a novel technology for the sustained production and delivery of therapeutic proteins in patients using their own tissue, today reported that fully owned subsidiary, Medgenics Medical Israel Ltd. (MMI), was awarded a government grant of up to NIS 6.7 million ($1.9 million), from the Office of the Chief Scientist (OCS) at Israel's Ministry of the Economy.
The grant will finance further research and clinical development of Medgenics's proprietary tissue-based Biopump platform technology for the treatment of anemia and hepatitis.
Under the terms of the OCS grant, MMI will repay the grant in full, plus interest, through royalties on revenue received from commercializing the developed technology. The payment of royalties is contingent on generating revenue and does not need to be paid if no sales materialize.
Medgenics CEO Andrew Pearlman said, "This is our seventh consecutive grant from the Israeli OCS. These grants have been instrumental in furthering the development of our technology and support us in advancing our clinical trials in the US and Israel."
Published by Globes [online], Israel business news - www.globes-online.com - on July 9, 2013
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