Monday, November 21st 2011
Movac, an early investor in Trade Me, is investing $1 million in a small Christchurch company developing what it hopes will be a prevention treatment for migraines.
The $1m will be used by Migco Pharmaceuticals to prepare an application to the United States Food and Drug Administration (FDA) to trial the compound from pinus radiata for migraine prevention.
It is seeking "investigational new drug approval" from the FDA.
Migco, based in Rangiora, about 20km from Christchurch, was set up in 2004. It has codenamed the compound MGX-008.
Migco chief executive Larry Stenswick said the company had a big vision to develop a prescription medicine for the market of more than 20 million sufferers of migraines in the United States.
Drug development was complex and slow. The company would need to raise further capital, about $5m, in about six to 12 months to carry out the clinical trial.
He expects the trial to be carried out in Australia and California. He is working with Professor Lyn Griffiths, at Griffith University, a leading world researcher in this area, and with a neurologist in California.
"All in all it's still early days," Stenswick said.
It was a major challenge to raise capital in New Zealand and drug development in particular was a very difficult area to raise capital in because the years of development and trial were long before sales were started.
He spoke with a lot of potential investors and Movac, based in Wellington, understood the long time frame and the vision. Movac, had been an early investor in Trade Me, he said.
Movac's shareholders include the McSyth Family Trust and family trusts associated with Ian Miller, Richard Abbott, Mark Richter and Sharon Weaver.
The aim was to develop an international company and that was a bigger vision than many New Zealand companies had.
Stenswick said of the about 80 biotech companies in Australia, about 50 were in drug development.
A related company to Migco is ENZO Nutraceuticals which launched an anti-oxidant supplement in capsule form more than 10 years ago called enzogenol, made from the bark of pinus radiata trees.
More infomation about MGX-008
MGX–008 is a derivative of an extract of the bark of Pinus radiata (Monterey Pine). It is a novel class of botanical therapeutic compounds that represent a new approach to preventing migraine headaches. It has been developed through a substantial number of scientific and clinical studies including 8 human and animal trials. Produced for Migco in a new dedicated $3m plant, it is based on a readily available raw material. MGX–008 is exceptionally consistent, stable and scalable through to commercial availability.
As a polymolecular compound, MGX-008 is progressing through the regulatory process toward approval as a prescription drug.
The unique water–only extraction process to produce MGX–008 is environmentally friendly and gives MGX–008 a specific and biologically active makeup. The process has been exclusively licensed to Migco and is covered by United States and worldwide patents.
Migco also has issued and pending patents for MGX–008 for treatment of migraine.
This double layer of patents–process and method, use, compound–combined with proprietary production knowledge underpins the investment in drug development.
Sourced from Stuff.co.nz - The Press
This is exciting. We can only hope they can get the funding they need to see this through. We stock Enzogenol in both 120mg and also 240mg. Phone one of our naturopathic team to find out more about the 240mg.
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