HTX spins off new company
Sydney, Oct 17, 2007 - Shares in diagnostics company HealthLinx (HTX) rose by 5% today after the company said it will establish a new single purpose company, Proaegis Biosciences, to develop drugs for Acute Respiratory Distress Syndrome and Ulcerative Collitis. A second therapeutic compound, Follistatin, with two patents targeting Ulcerative Colitis has been in-licensed and will also be transferred to Proaegis Biosciences. Healthlinx will retain a 36% stake in the new company. Proaegis is now embarking on a private capital raising of up to $5 million to fund development over the next 36 months. "We have secured the first $1 million and expect to soon raise the remaining $4 million," said Healthlinx managing director, Nick Gatsios. Healthlinx said it has already received expressions of interest for the remaining $4 million, and it expects that the balance of the funds will be secured from "sophisticated investors" by early 2008. "We have been working on this transaction for some time and continued patent portfolio development is anticipated to build a portfolio of assets to create significant value for shareholders," said Mr Gatsios. Proaegis will be developing the two novel bio-therapeutics, CR014 and Follistatin, to target Acute Respiratory Distress Syndrome and Ulcerative Colitis. The company claims that CR014, the lead compound, is a novel natural human peptide that inhibits aberrant vascular permeability and associated inflammation after acute lung injury. "It appears to be a promising treatment for ARDS and similar diseases," said Mr Gatsios. Proaegis plans to demonstrate clinical Phase I efficacy for CR014 and Follistatin and will then seek to partner the programs. Healthlinx closed the day at 2.1 cents, up slightly from the previous day's 2 cent close.
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