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Proacta raises $12.7m
New Zealand anti-cancer company, Proacta
Therapeutics Limited, a cooperative venture between The University
of Auckland and Stanford University, has raised $12.7 million ($US8
million) from local venture capitalists and global leaders in the
pharmaceutical and biotechnology industries to further develop its
unique technology that targets hypoxic, or non-oxygenated, cancer
cells in solid tumours, Aki von Roy, Proacta’s Chief Executive
Officer, confirmed last week.
"This is a very exciting day for New Zealand science
and for a project that has the potential to provide a new treatment
for a very large proportion of people with cancer," he said.
Speaking at a function to celebrate the funding for
Proacta at The University of Auckland attended by Hon Pete Hodgson,
the Minister of Science, Research & Technology, Mr von Roy said the
funding confirmed the strength of the University’s research
reputation and marked an exciting transition point for Proacta in
advancing its programme of anti-cancer product development.
"The science team led by Professors Bill Denny and
Bill Wilson at the Auckland Cancer Society Research Centre, The
University of Auckland (ACSRC), and Professors Martin Brown and
Amato Giacca at the Division of Radiation and Cancer Biology and the
Department of Radiation Oncology at Stanford University are
recognised as world-leaders.
"The majority of people who are diagnosed with
cancer each year have significant areas of hypoxia in their tumours.
Our scientists have produced compounds designed to specifically
attack these cancers," Mr von Roy said.
Using “prodrugs” that remain inert until “switched
on” in the hypoxic regions of tumours, Proacta’s compounds have the
potential to destroy cancer cells while leaving healthy tissues
untouched. Mr von Roy said it had long been known that targeting
hypoxic cells had the potential to make both chemotherapy and
radiation treatment very much more effective.
There was also mounting evidence that hypoxia is a
predictor for aggressive and rapidly progressing tumours, but to
date treatments that effectively reached and destroyed hypoxic
tumour cells had been elusive. "Hypoxia-specific anti-cancer
products will normally have to be administered in combination with
other treatments, but Proacta’s new products have the potential to
do what other therapies generally fail to do - and that is to kill
hypoxic cancer cells," he said
The funding has been raised by an international syndicate led by
Australia’s leading life science venture capital group, GBS Venture
Partners. Other members of the syndicate are Genentech Inc and
Roche, based in the United States and Switzerland, and No 8 Ventures
and Endeavour i-Cap in New Zealand.
Brigitte Smith, Managing Director of GBS, said
Proacta’s technology was world standard. “We are focused on helping
talented entrepreneurs build great life science technology
companies. Proacta fits this mission perfectly. We are impressed by
the company’s scientific strength and very pleased at the strong
support shown by New Zealand investors and very significant global
life sciences companies.”
Professor Denny said Proacta’s research into prodrugs had begun
almost 20 years ago. Preclinical research had been supported by a
variety of government and public sources, including the Auckland
Cancer Society, the Health Research Council of New Zealand, the
Foundation of Research, Science and Technology through the NERF fund
and the Marsden Fund, and the Cancer Society of New Zealand.
The Government had also been a significant contributor to the latest
funding through the New Zealand Venture Investment Fund. Professor
Wilson said their team had developed several novel compounds with
outstanding effectiveness in destroying cancer cells in human
tumours in laboratory tests.
“This funding will be used initially to take two new
anticancer drugs into clinical trial in humans. It will support
preclinical safety toxicology, manufacturing and formulation
activities, in addition to phase I clinical trials in advanced
cancer.”
Throughout the early years of the company’s history it had been
supported by Auckland UniServices Limited, the wholly-owned company
of the University which manages and develops its commercial research
activities. Dr John Hood, Vice Chancellor of The University of
Auckland, said Proacta underscored the University’s research
capability and highlighted the investment opportunities this
provided. Jenny Morel, Director of No 8 Ventures, said Proacta’s
story was one of bringing strong science and business together.
Mr von Roy, who was formerly President of Bristol
Myers Squibb, Europe, and is now resident in New Zealand, had worked
to secure this financing over two and half years, she said. “We are
committed to helping New Zealand technology companies that are in
early development become successful substantial international
companies,” she said.
“This is our first human pharmaceutical biotech
deal, and it is a particularly exciting opportunity. Not only is
there extremely high quality science underpinning the company, but
in addition we are benefiting from the deal being led by an
experienced life sciences venture capital investor from offshore and
from having the syndicate include a leading pharmaceutical company
and a leading biotechnology company.”
Stuart McKenzie, General Partner of Endeavour said:
"Our investment in Proacta will help fund significant drug
development in New Zealand, taking world class research to the end
of a substantial FDA Phase IIa clinical trial. With the combination
of world class scientists and an international and experienced
investor syndicate there are significant future opportunities on
offer for the company."
Hon Pete Hodgson, the Minister of Science, Research & Technology,
said: "This announcement is a significant milestone, not just in the
fight against cancer, but in the development of New Zealand's place
in the multi billion dollar global biotech industry.
"Proacta's success is yet another example of New
Zealand leading the world in scientific research. Proacta can be
very proud of its achievements and in the way that they have been
supported through a mix of government, academic, charitable and
commercial funding."
Source: Proacta Media Release, 24 June 2004 |
