Pfizer buys rights to BioRap autoimmune drugJun. 6, 2016
BioRap Technologies, which commercializes technology developed by the Technion Rappaport Institute for Research in Biomedical Sciences, has signed a commercialization agreement with pharm giant Pfizer for a drug for treatment of autoimmune diseases, initially for inflammatory intestinal diseases. Rappaport Institute research Prof. Nathan Karin developed the product.
The price of the deal is believed to include an advance of several hundred thousand dollars, with a potential in the tens of millions of dollars, including royalties - a relatively large amount for a commercialization deal at a pre-clinical stage.
The product has an unusual history and future. It was previously given for commercialization to Iluten, a company founded in the Ashkelon incubator, which obtained investments from funds like Pontifax Venture Capital and Clal Biotechnology Industries Ltd. (TASE: CBI). Iluten returned the product to BioRap, however, after the incubator ran into difficulties. It was developed under BioRap's responsibility by Biond Biologics, founded by former employees of drug development company cCam.
BioRap CEO Dr. Orit Shaked said, "Every technology commercialization deal includes a clause requiring the return of the technology to the research institute if the partner concedes it, with all the accumulated know-how. That is how we got the product back from Iluten, together with stunning results accumulated by us and them. Following our strenuous development efforts, two large companies and one smaller company became interested, and a deal was eventually signed with Pfizer.