Biotech firm scores funding for MS trial
Innate Therapeutics gets $790,000 for clinical trials
Friday, May 21 2010 || News || BY Patrick Smellie - The Independent
Formed in 2000 to pursue an HIV treatment, Innate was forced to abandon that development in 2008 when it became clear the market was too crowded.
It set about seeking areas of medical treatment demand where little progress was being made.
That led to this month’s award of the 15-month grant from Fast Forward LLC, a non-profit organisation involving the US National Multiple Sclerosis Society and EMD Serono, an affiliate of ‘‘big pharma’’ giant Merck GaA, of Germany.
The 12-month Phase 2-A trial of the MIS416 technology will occur in Christchurch, with a view to a new round of capital-raising of around US$10 million to take the emergent treatment to a Phase 2-B trial in 2011, chief executive Simon Wilkinson says.
A successful Phase 2-A trial could yield a ‘‘value uplift’’ of five to 10-fold. However, success at the Phase 2-B stage offered a potential 25-fold or greater uplift.
‘‘From a business standpoint, it makes far more sense to raise those funds before looking to partner the drug for MS with a large pharmaceutical company. There is far better value by partnering at that point.’’
The MIS416 technology is a form of immune response modifier with potential for use in the treatment not only of MS and other auto-immune diseases, but also a range of infectious diseases such as Hepatitis-C, and certain cancers.
However, focus on a single disease was vital for a New Zealand company operating in a capital-starved environment. The lack of alternatives to a single highly toxic treatment for progressive MS made the area attractive for research, he said.
‘‘It validates that directing our drug candidate towards MS is a realistic approach to be taking.
‘‘There is enormous unmet need in the MS market and significant interest among drug companies.’’
Innate has some 1700 shareholders, mainly New Zealanders and Americans, and has been developing MIS416 in collaboration with both national and international academics.
