News & Market Updates

MGVS signed $8.5M financing round and cooperation agreement with Teva Pharmaceutical Industries and its existing and new investors

 MGVS –Multi Gene Vascular Systems announced today that it has signed a financial round in the amount of US $8.5 million, led by Teva Pharmaceutical Industries Ltd. The financing round included also its existing investors, Tamir Fishman Ventures, Ofer Hi – Tech, Aviv Ventures and private investors. Teva Pharmaceutical will invest $4 million and the existing and new investors will join the current investors and invest $4.5 million by conversion of prior convertible notes given to the company.

This financing round will allow MGVS to finish its MultiGene Angio dosing study (Phase I\IIa) planned for 2010 and move forward the MultiGene Graft product into clinical study. In the financing agreements Teva has the option to continue funding the clinical development program of MGVS’s MultiGene Angio and MultiGene Graft products up to regulatory approval. In case Teva will exercise its option and the products will be granted regulatory approval in Europe or in the US, the current shareholders would sell their shares to Teva in return for a one time advanced payment of $33M or $18.5M (depending on the first product to be granted regulatory approval), and additional milestone payments, sales and royalty-based proceeds that could reach a significant sum of US $. Under the agreement, MGVS will retain the right to its other potential products, most notably its biological stent and its liver regeneration product.

The company was founded in August 2000 by Prof. Moshe Flugelman and Prof’ Basil Lewis of the Lady Davis Carmel Cardiovascular and Medical Center in conjunction with the Naiot Technological Center, managed by the Ofer Brother Hi-Tech Group. It is a Bio- Technology company that developed a novel technology based on Cell and Gene therapy for the treatment of vascular diseases in patients suffering from peripheral and coronary artery disease. The company is headed by Guy Yachin, the CEO, and Moshe Flugelman who serves as the CTO and President.

 MGVS most advanced clinical products aimed at providing an effective solution for patients with narrowed blood vessels. The company is currently finalizing its phase 1/IIa clinical trial of the MultiGene Angio product, conducted in leading US medical centers. Preliminary results demonstrated very good safety and clinical results.

 Therapeutic angiogenesis is the method of improving blood flow by growing new blood vessels in areas of the body where arteries are blocked. The process is based on the use of genetic engineering using special angiogenic genes.

“MGVS’ technology and products address an unmet need of no option patients with peripheral and cardiac vascular diseases. The completion of this financing round and the benefits from the relations with a Pharmaceutical company like Teva, secures our funding and boosts our ability to reach the market in an accelerated pace” said Guy Yachin, the company’s CEO.

Dr. Benny Zeevi, Managing General Partner, at DFJ Tamir Fishman Venture and the Chairman of the board of Directors added “MGVS technology provides the potential for a breakthrough in this area, representing a significant market opportunity. The scientific background behind MGVS technology is highly appreciated by leading scientists, and medical opinion leaders from all over the world. The preliminary excellent results of the phase I/IIa clinical trial and the strategic investment by Teva Pharmaceutical is a significant step in bringing MGVS products to the market for the benefit of hundreds of thousands of no option patients”

 The company states that the consummation of the transaction is subject to several conditions precedent, which include among others the receipt of required approvals. In addition, the company emphasizes that its current estimations regarding the efficiency of its products as well as regarding the continuance of the clinical trials are subjective estimations, which will not necessarily occur. Also, the company emphasizes that the follow up investment of Teva, is subject to the results of the clinical trials as well as to sole discretion of Teva.