Shares in biotech firm ProCognia jumped yesterday, when it reported a license agreement with a Japanese firm, and a collaboration agreement with a Dutch company and European universities.
ProCognia (Israel) Ltd. (TASE:PRCG) reported that it has signed a collaboration agreement with Dutch company DC4U BV, and with three European universities - University Medical Center Amsterdam, Erasmus University Medical Center Rotterdam, and Turun yliopisto Turko Finland.
The goal of the collaboration is to develop a diagnostic product for early detection of prostate cancer. The product will be based on analyzing the sugar content in blood samples, through ProCognia's bio-chips.
The project will last three years, and will be funded by the EU's Eurostars program. The Eurostars program is expected to grant ProCognia NIS 1.9 million (about €351,000), which will cover about half the project. The company also received authorization for a grant of NIS 589,000 from Israel's Office of the Chief Scientist.
Ashdod-based ProCognia also reported that it entered into a license agreement and a collaboration and marketing agreement with Japanese biotech company GP BioScience Ltd (GPB).
Under the agreement, Procognia granted GPB a license in some of its patents for the purpose of manufacturing, marketing and selling bio-chips and scanners of GPB in various countries of the world, exclusively in some, in return for the payment of royalties from product sales.
Upon the execution of the license agreement, GPB will issue ProCognia regular shares in GPB amounting to 6.8% of its issued share capital. ProCognia said that it does not consider the shares to be a significant asset.
The companies also undertook to cooperate with regard to the marketing and selling of both companies' products.
ProCognia raised NIS 43 million in a 2007 IPO on the Tel Aviv Stock Exchange (TASE). The company specializes in glycoanalysis. ProCognia shares collapsed in November, when Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) cancelled a collaboration agreement with the company. The shares jumped 29% yesterday, when the deals were reported, and its share is up 288% so far in 2009.
Published by Globes [online], Israel business news - www.globes-online.com - on June 11, 2009
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