Medgenics – just what the doctor ordered

Biopharmaceutical hopeful Medgenics claims it has made progress in clinical trials for its 'Biopump' protein delivery technology.

The US-headquartered company, whose research facilities are based in Israel, says Phase I/II clinical trials show that higher doses of erythropoietin (EPO) administered through its Biopump are now working on trial patients. Chief executive officer Andrew Pearlman declares that the trials show the technology to be ‘safe, effective and cost effective’.

During the trials, which began last year at Jeusalem's Hadassah Medical Centre, all patients reported a rise in haemoglobin levels, low levels being a symptom of illnesses such as anaemia and haemophilia. The second phase began this year in Tel Aviv, where the research team has successfully harvested tissue from the patients.

Loss-making Medgenics, which reported a monthly cash burn rate of $360,000 (£237,000) last year, obtains funding from private investors, venture capital funds and the Israeli government, which donates $1.2m a year via a grant. So far this year, the AIM-quoted company, which is debt free, has raised £836,000 from British and US backers.

Medgenics' ‘Biopump’ harvests the patient’s own tissues and injects protein from the harvested cells into the body, to treat conditions involving protein deficiency such as anaemia and haemophilia. The technology is significantly cheaper than existing treatments.

Medgenics' shares, recommended by Growth Company Investor at 6p in May, have now reached 9.25p. Hold on.