No announcement yet.

Neuro Discovery Inc. to invest up to $6 million in Neuro Therapeutics Inc

  • Filter
  • Time
  • Show
Clear All
new posts

  • Neuro Discovery Inc. to invest up to $6 million in Neuro Therapeutics Inc

    Neuro Discovery Inc. to invest up to $6 million in Neuro Therapeutics Inc

    Story Filed: Thursday, June 06, 2002 5:02 PM EST

    VANCOUVER, Jun 06, 2002 (Canada NewsWire via COMTEX) -- Neuro Discovery Inc. (TSX Venture: "NDI") announced today it will invest up to $6 million in Neuro Therapeutics Inc., a Vancouver-based private-stage biotechnology company with two platform technologies, each with the potential to produce multiple pharmaceutical products. The lead product has demonstrated it can promote regeneration of spinal cord tissue in animals and is expected to enter human clinical trials in 2003.

    The first tranche of the investment is expected to close June 15, 2002 and will include a purchase of $2 million Neuro Therapeutics Inc. convertible preferred shares. Additional tranches totaling $4 million will be triggered by the completion of performance milestones related to NTI's technology development anticipated over the next two years.

    Dr. Jim Miller, Chairman, President and Chief Executive Officer of NDI, said the investment in Neuro Therapeutics Inc. is one of several that NDI will make in companies with leading edge technology and attractive commercial prospects in the field of brain and central nervous system therapy.

    "Our objective is to capitalize on the track record of our management and directors to select winning technologies and to accelerate the commercialization of these technologies by providing capital and management expertise," Miller said. "We are focusing on neuroscience because there are large unmet clinical needs in this rapidly-growing sector - and we have identified several early-stage companies whose technologies can fill some of these needs."

    Miller said Neuro Therapeutics Inc. has two technology platforms that each has the potential to yield multiple commercial products.

    "Their animal studies demonstrate they can regenerate severed spinal cord neurons - and this places them at the forefront of a large and exciting new field of medicine. The first product from this platform is expected to enter human clinical trials next year," Miller said.

    "We are also enthusiastic about their second platform which is a new method of discovering drugs that target G-protein coupled receptors in the brain. Drugs that target G-protein coupled receptors already account for nearly half of all pharmaceutical drugs on the market - and Neuro Therapeutics brings a new proprietary technology for identifying and testing new drugs to treat brain and nervous system disorders."

    Dr. John Steeves, President and Chief Executive Officer of Neuro Therapeutics, said the relationship with NDI brings capital and management expertise that will enable his company to accelerate its research and commercialization programs.

    "This relationship with NDI also brings significant validation to our technology and our products," said Steeves. "NDI's management, board and scientific advisors include many of Canada's most successful biotechnology entrepreneurs - and their commitment in our company significantly increases our ability to succeed," said Steeves.

    About Neuro Discovery Inc.

    NDI was listed on the TSX Venture Exchange in December 2001 as a vehicle to make investments in biotechnology companies and technology rights with commercial potential in the neuroscience sector. In addition to capital, NDI provides its investee companies with management and scientific expertise to accelerate their research and product development programs.

    NDI is the latest venture of two of Canada's most successful biotechnology entrepreneurs, Dr. Jim Miller and Dr. Anthony Phillips.

    - Miller is Chairman, President and CEO of Neuro Discovery Inc. He is
    also Senior Vice-President of Trian Equities Ltd., a TSX Venture-
    listed venture capital company. Miller was the founding Chairman and
    CEO of two of Canada's leading biotechnology companies, QLT Inc. and
    Inex Pharmaceuticals Corporation. He is also a former UBC physiology
    - Phillips is Chief Scientific Officer of NDI, a Professor of
    Psychiatry and former chairman of psychology at the University of
    British Columbia, Chairman of the Institute of Neuroscience, Mental
    Health and Addictions for the Canadian government's Canadian
    Institute for Health Research, and a co-founder of QLT Inc. and
    StressGen Biotechnologies Inc.
    Other NDI shareholders and directors include G. Donald Love, former chairman and CEO of Oxford Property Group Inc.; Raymond McLean, President and Chief Executive Officer of Trian Equities Ltd.; Ralph Lutes, Counsel to law firm Stikeman Elliott; and Kenneth Galbraith, biotechnology investor and consultant, a director of five biotechnology companies and a former chief financial officer of QLT Inc.

    About Neuro Therapeutics Inc.

    Neuro Therapeutics Inc. is a private-stage company founded by Dr. John Steeves and other scientists at the University of British Columbia. The company has licensed from UBC the exclusive rights to develop and commercialize two platform technologies, each with the potential to produce multiple pharmaceutical products.

    The first platform, Spinal Cord Therapeutics, is based on discoveries made by members of ICORD (International Collaboration On Repair Discoveries) at UBC. Neuro Therapeutics pre-clinical animal studies demonstrate that this technology can regenerate neurons after traumatic injury of the spinal cord. This technology also has application to other brain injuries and central nervous system disorders.

    In addition to his duties as President and CEO, Steeves leads the company's spinal cord repair research and development. He is also Professor and Director of ICORD and has also worked closely with Rick Hansen and the Rick Hansen Institute to develop ICORD and other spinal cord initiatives throughout Canada and the world for the past 15 years. He was recently awarded the B.C. Leadership Chair for Spinal Cord Research at UBC.

    Neuro Therapeutics' second platform is a screening process, known as Core Assay Technology, to select compounds that treat diseases by interacting with the predominant brain receptors, called G-protein coupled receptors.

    The Core Assay Technology platform was developed by Dr. Tom Grigliatti and other scientists at UBC. Grigliatti is a Vice-President of Neuro Therapeutics and leads the company's program to commercialize this technology. He is also a Professor of Zoology and an Associate of Medical Genetics and ICORD at UBC.

    Neuro Therapeutics existing shareholders include its senior management, including Steeves; Milestone Medica Corporation, a joint venture of Royal Bank Ventures Inc and Tucson, Arizona-based Research Corporation Technologies; and University Medical Discoveries Inc., whose partners are Canadian Medical Discoveries Fund Inc. and MDS Capital Corp.

    J.J. Miller, PhD
    Chairman, President & CEO
    The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this Release.

    "If the wind could blow my troubles away. I'd stand in front of a hurricane."

  • #2
    This is really good news. I was worried that it might be difficult for NeoTherapeutics to find financing after the negative Alzheimer's trial. I hope this means they can go on with SCI research and maybe trials.


    • #3
      Believe this is a different company, not NeoTherapeutics.

      Actually better news - a different approach.


      • #4
        Yes, this is a different company altogether. This is a Canadian company. John Steeves is a spinal cord injury scientist. Wise.


        • #5
          Thanks everyone. I guess I should read closly instead of skim rapidly. Now I am worried again!!!!!!


          • #6
            Neuro Theraputics


            They have a protocol for temporarily demyelinating a portion of the injured cord which promotes regeneration. I'm not sure how this will help achieve long distance regrowth of axons. It doesn't appear they plan to demyelinate the entire cord. It would seem a way to get axons growing through the injury site. I guess they're on their own after entering the cord on the other side of the injury.

            ~See you at the SCIWire-used-to-be-paralyzed Reunion ~
            ~See you at the CareCure-used-to-be-paralyzed Reunion ~