Russian venture capital fund Bioprocess Capital Ventures has agreed to invest $18 million for a 50% stake in the Incuron joint venture with Cleveland BioLabs, the companies announced on December 30, 2009. The joint venture, Incuron is going to develop the Curaxin compounds for cancer applications. Cleveland BioLabs agreed to transfer rights to its pipeline of Curaxin anti-cancer molecules to the new joint venture.
Cleveland BioLabs, Inc. (CBLI) is a Nasdaq-listed drug discovery and development company that is headed by CEO Michael Fonstein, COO Yakov Kogan and Chief Scientific Officer Andrei Gudkov. The company was formed as a spin-out of the Cleveland Clinic in 2003. CBLI is now also partnered with Roswell Park Cancer Institute in Buffalo, NY.
Cleveland BioLabs is going to receive $18 million in three separate payments for the development of Curaxin cancer treatment drug: $5.8 million after the formation of Incurion joint venture; $6.4 million after beginning of clinical trials of selected Curaxin compound on cancer patients; and $5.2 million after completion of one Phase I/ II trial.
Bioprocess Capital Ventures is a 3 billion Rubles ($100 million) fund that is based in Moscow, Russia and managed by Bioprocess Capital Partners. The fund was formed in December 2007 with investments from the Russian Venture Company (RVK) and Vnesheconombank (VEB). The fund focuses on investments in innovative technologies in life sciences, biotechnology and fine chemistry sectors.