Sole Aspireo Investor, TVM Capital, to Participate in Cortendo Financing
Tel Aviv, Israel, 18 May 2015: Aspireo Pharmaceuticals Limited (“Aspireo”), an Israeli biopharmaceutical company, focused on the development of Somatoprim (DG3173), a novel somatostatin analog (SSA), today announced that it has entered into an agreement with Cortendo AB (publ), [ticker: CORT on NOTC-A], on the acquisition of Aspireo’s Somatoprim (DG3173) program. Under the terms of the agreement, Cortendo will acquire all rights and obligations in the Somatoprim program and will be responsible for the further development and commercialization of the program. As consideration for the sale, Aspireo will receive USD $30 million worth of shares in Cortendo.
Carsten Dehning, CEO of Aspireo Pharmaceuticals said: ”Over the past years, we have been able to confirm and strengthen the unique profile of Somatoprim. Pre-clinical and clinical data demonstrate that Somatoprim has a pharmacological profile that is significantly differentiated from other SSAs that are currently marketed or in clinical development. Cortendo represents the ideal partner for this program, given the company’s focus on rare endocrine disorders and other rare diseases.”
“There are significant unmet needs in the diagnosis and treatment of both endogenous Cushing’s Syndrome and acromegaly, and Cortendo is passionate about the opportunity to simultaneously advance development of COR-003, DG3173 and ATL1103 and commence pre-commercialization activities, and to ultimately provide these patients and the physicians who treat them with novel therapeutic options,” said Matthew Pauls, president and chief executive officer of Cortendo.
Concomitantly with the acquisition of the Somatoprim program by Cortendo, Aspireo’s sole investor, TVM Capital GmbH, member of the firm’s Life Science Venture Capital practice based in Munich, has committed to make an investment of approximately US$ 4 million as part of Cortendo’s related round of financing.
Helmut Schühsler, Managing Partner of TVM Capital said: “This transaction represents proof of our concept of capital efficient pharmaceutical development through building and managing Project Focused Companies. We are impressed by the approach Cortendo is taking to becoming a leader in providing innovative therapeutic options to patients with rare diseases.”
The transaction is subject to certain closing conditions and approval by Cortendo’s shareholders and is expected to close within the coming weeks.
Notes to the Editors:
Somatoprim (DG3173) is a novel and proprietary somatostatin analog (SSA) that is based on a novel amino acid composition. Somatoprim has demonstrated a unique receptor binding and pharmacological profile which is differentiated from SSAs that are currently marketed or in clinical development. In particular, Somatoprim has shown an improved side effect profile with reduced adverse effects on the gastrointestinal tract and glucose metabolism. Furthermore, assessment of growth hormone secretion in cultured human somatotroph adenoma tissue treated with Somatoprim indicates that it has the potential to increase the response rate of acromegalic patients to SSA therapy. Somatostatin analogs have been approved for the treatment of acromegaly, carcinoid tumors, and Cushing’s disease but have also demonstrated significant potential in diabetic retinopathy. Somatostatin analogs are generating more than USD 1.5 billion in annual sales in a continually growing market.
Aspireo Pharmaceuticals Ltd is a biopharmaceutical company focused on the development of a novel somatostatin analog (SSA) for the treatment of diseases resulting from hormone-active tumors, such as acromegaly, neuroendocrine and gastroenteropancreatic tumors, Cushing’s Disease and diabetic retinopathy. Aspireo’s sole development compound is Somatoprim (DG3173), a novel and proprietary somatostatin analog that is based on a novel amino acid composition and a unique backbone cyclization technology used for stabilization of the peptide. Aspireo is an Israeli company established in 2010 by TVM Capital GmbH as a Project Focused Company (PFC). For additional information please visit www.aspireopharma.com.