CARMIEL, Israel--(BUSINESS WIRE)--Aug. 23, 2006--Protalix Biotherapeutics Ltd., a biopharmaceutical company focused on the development of plant-cell-culture-expressed recombinant therapeutic proteins, announced today that Dr. Philip Frost, former Chairman and CEO of IVAX Corporation, has led a $15 million round of investment in Protalix. Dr. Frost, together with a group of investors, (The Frost Group), will invest $15 million in Protalix pursuant to a stock purchase agreement, in exchange for ordinary shares representing approximately 14% of Protalix on a fully-diluted basis, and will receive a short term warrant for an additional 5% of Protalix for an investment of an additional $5.3M. After the closing of the investment, Dr. Philip Frost and Dr. Jane Hsiao, the former vice chairman of IVAX, will be joining Protalix’s Board of Directors. The stock purchase is expected to close within a month.
In addition, Protalix has entered into a merger agreement with Orthodontix (OTCBB:OTIX - News), a US publicly-held company controlled by Dr. Frost. Under the terms of the merger agreement, the existing shareholders of Protalix (excluding the Frost Group) will hold 85% of the shares of Orthodontix and the current shareholders of Orthodontix and the Frost Group will hold the remaining 15% of the shares of Orthodontix. The merger is subject to customary covenants and several additional conditions, and is expected to close in the fourth quarter of 2006. Following the merger, Orthodontix will change its name to Protalix Biotherapeutics Inc. and intends to apply for listing on a major stock exchange. Dr. David Aviezer, the CEO of Protalix, will serve as the CEO of the company.
This investment will allow Protalix to pursue advanced clinical studies for its enzyme therapy for Gaucher disease and advance additional drug development programs. Protalix has recently announced that it has completed Phase I clinical studies for its enzyme therapy for Gaucher disease. The company accomplished Phase I trials after receiving Investigational New Drug approval from the FDA for use of its proprietary plant cell bioreactor system for the production of the human recombinant glucocerebrosidase.
Dr. David Aviezer, Protalix’s CEO said: “We are privileged to have Dr. Frost join as a shareholder and board member. We believe that this investment, made by a top tier industry leader, provides important recognition of Protalix’s technology and vision. We are confident that Protalix’s Board of Directors will highly benefit from the knowledge and experience brought by Drs. Frost and Hsiao.”
“We are excited by the breadth of Protalix’s unique plant cell culture bioreactor platform, the quality of the management team and the prospects for the company’s products and technology, particularly its lead product for the treatment of Gaucher Disease, which is progressing through the clinical development process,” stated Dr. Phillip Frost. “Based upon its unique capabilities to manufacture safe and efficacious recombinant proteins for a number of therapeutic areas, we expect that Protalix will establish itself over the coming years as an innovative leader in this area.”
Mr. Eli Hurvitz, Chairman of Protalix Board of Directors said: “We are very pleased with Dr. Frost joining Protalix’s Board of directors. This investment is an important milestone in Protalix’s pathway to becoming a true international biotech player. We view this as an important sign of confidence in Israeli biotechnology in general and in Protalix in particular. We are looking forward to joining forces with Dr. Frost.”
About Protalix Biotherapeutics Ltd.
Protalix Biotherapeutics Ltd. is a biopharmaceutical company focused on the development and production of plant-cell-culture-expressed recombinant therapeutic proteins. Protalix’s unique platform addresses the unmet need of providing an efficient and scalable cell system for industrial production of human recombinant proteins. The strong IP positioning of the Company is based on a proprietary protein manufacturing platform in a plant cell culture with advantages that include the control of uniform glycosylation, cost-effectiveness and safety benefits. Protalix is pursuing a product-driven strategy and recently completed a Phase I clinical trial for its lead product- prGCD. A plant cell-expressed Glucocerebrosidase, prGCD is an Enzyme Replacement Therapy for the treatment of Gaucher Disease. This drug candidate is being prepared for Phase III clinical studies.
Protalix Biotherapeutics Ltd. 2 Snunit St. Science Park POB 455, Carmiel 21000, ISRAEL
Contact: Protalix Biotherapeutics Ltd. CEO David Aviezer, +972-4-988-9488 david@protalix.com or VP Business Development Sabina Glozman, +972-4-988-9488 sabina@protalix.com or www.protalix.com
Source: Protalix Biotherapeutics Ltd.
