arGentis Pharmaceuticals raise round from Innova Memphis

Tech Journal South
April 22, 2008

MEMPHIS, TN—ArGentis Pharmaceuticals, which is developing treatments for dry eye syndrome and a life-threatening autoimmune disease, has raised an undisclosed amount of funding from Innova Memphis Inc., an early-stage investment fund.

ArGentis has two therapies that will be used to treat dry eye syndrome (DES): ARG101(T) treats menopausal women, and the other ARG102(P) treats men and younger women. The method of delivery makes the therapies unique, the company says. The treatments are applied as a cream or gel to the outer upper and lower eyelids for transdermal delivery of the active pharmaceutical ingredient to the affected glands of the eye.

"Part of our attraction to arGentis was that the founders are local Memphis business leaders who are passionate about creating a successful pharmaceutical company in Memphis," said Ken Woody, president of Innova.

"Initially working through the Memphis Bioworks Foundation, the management of arGentis identified therapies at the Southern College of Optometry to treat dry eye syndrome. A search for additional technologies to treat chronic diseases led arGentis to a treatment for systemic sclerosis (scleroderma) developed by the University of Tennessee Health Science Center."

Systemic sclerosis (SSc), is a life-threatening autoimmune disease. In the United States, approximately 80,000 people suffer from SSc (Mayes, 2003), with a similar number of sufferers in the European Union. The median survival from the time of diagnosis is only 11 years.

ArGentis' therapy, ARG201, has completed a Phase II clinical trial and if successfully commercialized will have huge impacts on patient care. In its large multicenter Phase II trial, ARG201 demonstrated it has the potential to significantly extend life expectancy. By inducing immune tolerance, ARG 201 causes an immunologic change that enables the body to cease its autoimmune attack. ARG201 recently received orphan status from the Food and Drug Administration.

Innova. created by the Memphis Bioworks Foundation, funds Memphis companies to help them become commercially successful. As part of the investment, Innova will become a shareholder in arGentis Pharmaceuticals and Woody will hold a position on the arGentis board.

Another reason Innova invested in arGentis, it says, is that in addition to having great potential, it also supports the efforts of the local universities. arGentis' success will bring royalties to both the Southern College of Optometry (SCO) and the University of Tennessee Health Science Center, enabling both institutions to continue with their strong research focuses and develop more intellectual property that has commercial viability.

Innova is one of three strategies from the MemphisED program aimed specifically at developing a culture of innovation and entrepreneurialism in Memphis. MemphisED is the economic development component of the larger Memphis Fast Forward initiative.

"Innova resulted from the MemphisED program," said Steven J. Bares, executive director of the Memphis Bioworks Foundation. "This investment is right on track to grow new jobs in the bioscience sector and help to create an entrepreneurial center of excellence in the Memphis community."

Davis, president and CEO of arGentis said, "The investment will be instrumental in arGentis continuing to execute its strategic plan and in creating value for our stakeholders by allocating additional resources to move our dry eye therapies into clinical trials later this year. We also will continue to develop the infrastructure to move ARG201 into a Phase III clinical program.”

On the Web: www.argentisrx.com