KAHR Medical, a Hadasit Bio-Holdings Ltd. Portfolio Company, to Raise $2.6 Million
JERUSALEM, June 18, 2012 /PRNewswire/ -- Hadasit Bio-Holdings ("HBL") (TASE: HDST, OTC: HADSY) a publicly traded portfolio of biotech companies, based on intellectual property developed and owned by the Hadassah University Hospital, Israel's foremost medical research center, today announced that KAHR Medical Ltd. ("KAHR"), a portfolio company in which HBL and Sanofi (NYSE: SNY) hold approximately 70% and 20% respectively, will raise $2.6 million at a pre-investment valuation of $11 million.
Thomas Eldered, co-owner of Recipharm (www.recipharm.com), one of the largest pharmaceutical Contract Development and Manufacturing Organizations (CDMO) in Europe, will invest $2 million and hold approximately 15% of the company. Sanofi, the third largest pharmaceutical company in the world, will maintain its current holdings with an investment of $500,000. HBL will invest an additional $100,000 and reduce its holding in the company to approximately 55%.
Ophir Shahaf, CEO of HBL, commented on the investment round, "This investment is another significant achievement following a string of strategic agreements that we have recently closed in our portfolio companies. Forming synergistic collaborations with our partners is a major part of our strategy, and the pre-investment valuations of our recent deals reflect the recognition of value that global pharmaceutical companies give to our portfolio companies. Additional developments - clinical, scientific and strategic - are in progress and are expected to materialize in the coming months, creating substantial value for our shareholders."
Dr. Noam Shani, CEO of KAHR, stated, "We are proud of this investment agreement. I am convinced that the partnership with Mr. Eldered, co-founder and CEO of one of the leading pharmaceutical CDMOs in Europe, will bring significant benefits to KAHR. Additionally, Sanofi's pro rata investment, maintaining its holdings in KAHR, is a vote of confidence for the company, its management and technology. We are proud of our close relationship with Sanofi and their commitment to KAHR. The Company is now well positioned for success with its innovative cutting edge technology and strategic investors, enabling it to accelerate the development of its two lead products. "
KAHR Medical is developing a technology platform known as SCP (Signal Converter Proteins), which allows the construction of protein-based drugs with two functional sides. In contrast to current biological drugs that possess only one functional side, the two functional sides of SCPs allow these drugs to block or activate two reinforcing biological signals at the same time. The SCP platform forms a new generation of biological drugs with great diversity and superior efficacy.
KAHR's leading products, KAHR-101 and KAHR-102, are in pre-clinical development towards treatment of several cancers and autoimmune diseases and are expected to enter clinical trials next year.
About KAHR Medical:
KAHR develops novel drugs that are based on the SCP (Signal Converter Proteins) platform technology for the treatment of cancer and autoimmune diseases. The company's technology is based on many years of research by Dr. Michal Darnitzki Elhallel, Head of Nephrology and a senior researcher at the Hadassah Medical Center, and Professor Mark Tykocinski, dean of the School of Medicine at Jefferson University in Philadelphia and former Chief of Pathology at the University of Pennsylvania. KAHR Medical is managed by Dr. Noam Shani.
For more information please visit - www.kahr-medical.com
About Hadasit Bio-Holdings:
Hadasit Bio-Holdings, Ltd., established in 2006, is the publicly traded subsidiary of Hadasit Ltd. - the technology transfer company of the Hadassah University Hospital, Israel's foremost medical research center. The Company was established for the purpose of promoting and commercializing the intellectual property and R&D capabilities generated by Hadassah.
HADSY is the domestically traded ADR of Hadasit Bio-Holdings, a public investment vehicle of six portfolio biotech companies all based on inventions developed by Hadassah. Hadasit Bio-Holdings focuses on advancing companies that have already shown proof of concept and successful preclinical trials to completion of Phase I/II.
The portfolio companies develop drugs with blockbuster potential (targeting markets that are worth over a billion dollars) operating in the fields of cancer, inflammatory diseases and tissue regeneration using stem cells - areas in which the Hadassah Hospital has extensive knowledge and recognition as a global leader. The company is managed by Ophir Shahaf.
For more information please visit: www.hbl.co.il
SOURCE Hadasit Bio-Holdings