Faron Awarded ?1.5 million Tekes Funding

RNS Number : 6564J

Faron Pharmaceuticals Oy

21 December 2015

 

Faron Pharmaceuticals Oy

("Faron" or the "Company")

Faron Awarded €1.5 million Tekes Funding to

Progress Novel Cancer Immunotherapy Clevegen

TURKU - FINLAND 21 December 2015 - Faron Pharmaceuticals Ltd ("Faron") (LON: FARN) is pleased to announce that Tekes, the Finnish Funding Agency for Innovation (www.tekes.fi) has granted €1,535,100 in funding to progress the preclinical development of Clevegen, Faron´s novel cancer immunotherapy drug candidate. The funding awarded is a government loan ("Loan"), which covers 50 per cent of the budgeted cost of the preclinical development of Clevegen.

Clevegen targets Clever-1 cell surface receptors, which are involved in cancer growth and spread. When Clever-1 is blocked, tumour-associated macrophages (TAMs) cannot enter the tumour site and their function in the tumour as an immune suppressive cell is diminished. Both these events are shown to change the tumour environment from immune suppression to immune stimulation, allowing the host immune system to fight the tumour cells. The active pharmaceutical ingredient of Clevegen is humanised anti-Clever-1 antibody. Clever-1 is known to reduce Th1 mediated immunity in particular such that blocking it increases this immunity (see Company announcement on 30 November 2015).

Dr. Markku Jalkanen, CEO of Faron said: "We are very grateful to Tekes for this non-dilutive funding. Clevegen has the potential to become an important part of immune therapies against cancers and is currently undergoing preclinical trials by our collaborators in cells from cancer patients. We are excited about the opportunities presented by Clevegen which also has the potential to be used in combination therapies with other immune check-point compounds while progressing to clinical stage."

The final conditions of the Loan are yet to be negotiated with Tekes but are likely to follow the conditions set for the Tekes loans in respect of Traumakine previously. Loans are normally unsecured and have low interest rates (below EU market values). Furthermore, if the project falls short of its goals and results cannot be commercialised, part of the loan may afterwards be converted into a grant. Loans can partly be obtained in advance.

As announced on 3 November 2015, Faron has entered into an agreement with Selexis SA under which Selexis will establish the rapid generation of high expressing clonal cell lines for use in the development and production of Clevegen monoclonal antibodies for pre- and clinical development.

For more information, please contact:

Faron Pharmaceuticals Oy

Katja Wallenlind

Phone [phone]
E-mail: [e-mail]

Cairn Financial Advisers LLP, Nominated Adviser

Emma Earl, Tony Rawlinson and Rebecca Anderson

Phone: [phone]

Whitman Howard Limited, Nominated Broker

Niall Devins, Francis North

Phone: [phone]

Hume Brophy, PR

Mary Clark, Eva Haas, Hollie Vile

Phone: [phone]

E-mail: [e-mail]

About Clevegen

Faron´s preclinical drug development project Clevegen revolves around Clever-1, a cell surface receptor expressed mainly by endothelial cells and monocytes/macrophages. Clever-1 is involved in cancer growth and spread. The active pharmaceutical ingredient of Clevegen is a humanised anti-Clever-1 antibody.

Clevegen, by binding Clever-1 prevents Tumor Associated Macrophage (TAM) infiltration into a tumour and blocks TAM-to-Tumour cell interaction triggering TAM transformation into tumour supportive cell types. It therefore reduces suppression of the human immune system and converts the whole immune environment around a tumour to immune stimulating allowing a patient's own immune system to combat cancer, known as "immunotherapy". Clevegen has a local tumour effect which also allows the cell-mediated immune response to attack infections in normal tissues and removal of immune suppression locally also limits risk of autoimmune reaction, a potentially severe side effect observed with some immune checkpoint inhibitors. The Directors of Faron believe that Clevegen is well differentiated from competing products as it specifically targets M2 TAMs which facilitate tumour growth, while leaving intact the M1 TAMs which support immune activation against tumours. Clever-1 blocking results especially in activation of Th1 mediated immunity.

About Faron Pharmaceuticals Oy

Faron is a drug discovery and development company focused on creating novel treatments for medical conditions with significant unmet needs. The Company is based in Turku, Finland. The Company currently has a pipeline of clinical stage products focusing on acute organ traumas, cancer immunotherapy and vascular damage. The Company's lead candidate Traumakine®, has been developed to treat acute respiratory distress syndrome ("ARDS"), a rare, severe, life threatening medical condition characterised by widespread inflammation in the lungs. Traumakine® is now in a pan-European pivotal Phase III study (INTEREST). Besides Traumakine®, Faron's pipeline consists of early stage assets including a pre-clinical anti-Clever-1 antibody named Clevegen. Clevegen is focused on converting the immune environment around a tumour from being immune suppressive to immune stimulating and represents a novel immuno-oncology approach. Faron Pharmaceuticals Oy is listed on AIM under the ticker 'FARN'. Further information is available at www.faronpharmaceuticals.com

About Tekes 

Tekes - the Finnish Funding Agency for Innovation - is the most important publicly funded expert organisation for financing research, development and innovation in Finland. Tekes boosts wide-ranging innovation activities in research communities, industry and service sectors. Tekes promotes a broad-based view on innovation: besides funding technological breakthroughs, Tekes emphases the significance of service-related, design, business, and social innovations. Tekes works with the top innovative companies and research units in Finland. Every year, Tekes finances some 1,500 business research and development projects, and almost 600 public research projects at universities, research institutes and universities of applied sciences. Research, development and innovation funding is targeted to projects that create in the long-term the greatest benefits for the economy and society. Tekes does not derive any financial profit from its activities, nor claim any intellectual proprietary rights.

 

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