June 3, Moscow—RVC Seed Fund Investment Committee considered investments into first two projects:
— one submitted Obninsk Pharmaceutical Company, LLC—a myocardial infarction diagnostic system Cardiomarker (investment demand—RUB 30 mln, including capital from RVC Seed Fund);
— the other submitted by OncoMax, LLC—a kidney cancer remedy (investment demand—RUB 15 mln, including capital from RVC Seed Fund).
Both projects will attract private and public capital in a 25% to 75% proportion, respectively.
These projects are the Seed Fund’s first deals since its launch late last year. Before the deals are executed, transaction documents are expected to be submitted by the companies.
Both projects were brought to the Seed Fund by its Venture Partners: OncoMax was fine-tuned and pitched by Maxwell Asset Management, and Cardiomarker—by MedBioPharm. Both Venture partners will buy into the companies they have presented.
Both transactions involve commitment of funds at certain project and agreement performance landmarks. First commitment may be drawn down to the companies as early as mid-June, subsequent upon compliance to investment committee requirements and legal execution of all agreements.
“RVC Seed Fund’s network numbers 44 venture partners, over a half are regional companies. Today, we have seen the first results of this synergy. Hopefully, in the near future, the Fund portfolio will include a significant number of new innovation projects”, noted Alexey Teleshev, CEO of RVC Seed Fund.
Igor Agamirzian, CEO of RVC, in turn added that, against all expectations, he was pleased to see the Fund’s first projects to be biotechnologies instead of IT start-ups.
“Market players keep a keen eye on the activities of RVC itself, and its vehicles. The Seed Fund is a new vehicle—requiring particular attention.
A top priority objective to be attained in the near future is to expose to all market players the efficiency of venture business and the availability of capital for technology entrepreneurs. Russia never had anything similar, Russian venture business is just doing its first steps. RVC Seed Fund is in close synergy with venture partners, providing expert support, assistance in deal structuring and project due diligence and expertise”, Andrey Vvedensky, RVC Director of Programs and Projects Department, commented on the Fund’s activities.
RVC Seed Fund investees:
Development of the therapeutic monoclonal antibody to treat kidney cancer. The project initiated following the discovery of the therapeutically and pathogenically significant target and subsequent production of the relevant murine antibody. Investments will be made to finance humanization of the antibody, as well as in vivo cell model efficacy study. The therapy is expected to be more efficacious and less expensive as compared to peers, and it is supposed to be used both as first and second line therapy. In case of successful trials the therapy will grab the meaningful share on the rapidly growing market of target anticancer drugs. The project was noted and awarded as one of the best of medical innovative initiatives in Russia.
In 2009 the project was included in the “golden hundred” by the experts of the Zvorykin project and was awarded as the best Russian innovative medical project started by the young scientists.
Test strips allowing to diagnose a myocardial infarction within 10—15 minutes. These strips allow to determine a soon infraction several hours before the attack itself, at first symptoms.
The project was previously invested into by the FASIE fund.