Nuvo Research Inc. has announced that the Development Bank of Saxony (SAB) in Germany has agreed to provide Nuvo with up to €4.4 million of funding for the further development of its improved reformulated version of WF10 (Reformulated WF10).
The funding will take the form of a non-repayable reimbursement of specific development monies expended by Nuvo until July 2014.
The SAB funding will be used to support CMC activities, "in vitro" experiments and a number of preclinical studies relating to Reformulated WF10 for which Nuvo filed a US provisional patent in December 2011.
These studies are being conducted by Nuvo in partnership with the University of Leipzig and the Fraunhofer Institute for Cell Therapy and Immunology (IZI) in Leipzig.
The total cost of this development program is estimated to be €6.3 million and the SAB committed to provide up to €4.4 million in funding to support these projects.
Nuvo will have certain contractual obligations to the SAB including the obligation to provide matching funding from its own resources of €1.9 million over the two year period ending in July 2014.
Nuvo will own or have exclusive global rights to commercially exploit all WF10 related intellectual property that comes from the funded projects.
In the fall of 2009, the SAB committed to provide funding over a three-year period of approximately €2.2 million for two WF10 development projects.
With the most recent commitment from the SAB, the total funding is approximately €6.6 million towards a €10.8 million development program.
"We are thrilled to expand our existing partnership with the SAB, the University of Leipzig and the Fraunhofer Institute by securing SAB funding that will allow us to continue with the development of WF10," said Dr. Henrich Guntermann, President of Nuvo's Immunology Group.
Dr. Guntermann continued, "WF10 is an extremely exciting compound with the potential to treat a broad range of medical conditions. We are pleased that the SAB recognizes WF10's potential and has chosen to partner with Nuvo."
Nuvo believes that WF10 has the potential to treat a wide range of medical conditions including auto immune disorders.
In 2010, Nuvo announced that its European Phase 2 clinical trial evaluating WF10 as a treatment for severe allergic rhinitis met its primary and secondary end points with a p-value of less than 0.001.