ProCognia jumps on expanded biosimilar collaboration

Glycoanalysis company ProCognia (Israel) Ltd. (TASE:PRCG) is expanding its collaboration with Norway's UniTargetingResearch AS (UTR) for the production of biosimilars (generic biological drugs). ProCognia is expanding its license for the exclusive use and commercialization of UTR's proprietary and patent-protected technology for improving the production of proteins by the biosimilars industry. The technology makes it possible to boost production of biological molecules created by genetic engineering.

ProCognia's share price rose 5.5% by early afternoon to NIS 0.67, giving a market cap of NIS 12 million.

Under the new agreement, ProCognia will undertake collaborations on the basis of UTR's platform, and will develop a biosimilar of a brand biological drug which currently has billions of dollars in annual sales. ProCognia believes that the biosimilar has reached the stage of possible commercialization.

ProCognia says that the biosimilars market is expected to reach billions of dollars in the coming years. Biological drugs are mostly sugar-bearing proteins for the treatment of cancers and autoimmune diseases. The expanded agreement with UTR is a milestone for the development of the platform for increasing production of bio-better proteins and in the cell's excretion of the proteins for the production of biological drugs.

ProCognia adds that the license for the development of cells which express biosimilar and biobetter products, together with the company's proprietary glycoanalysis (analysis of sugar structures in proteins) technology, puts it in a competitive position for the development of biosimilar drugs. The renewed agreement also gives the company potential revenue from its current collaboration with UTR.

ProCognia's GlycoScope is an integrated technological platform for the analysis of recombinant monoclonal antibodies and complex biopharmaceutical glycoproteins. UTR, a spin-off from the University of Bergen, has developed genetic engineering technology for enhancing the production of proteins by adding genetically engineered DNA sequences which increase production.

Published by Globes [online], Israel business news - http://www.globes-online.com - on November 6, 2012

Copyright of Globes Publisher Itonut (1983) Ltd. 2012

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ProCognia jumps on expanded biosimilar collaboration