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WINDHOVER INFORMATION INC. www.windhover.com [Extract: Start-Ups in Israel, page 10] [W#963054]. -BT PRONEURON BIOTECHNOLOGIES Lowering the blood brain barrierto-entry for autologous immune cells When a person breaks a bone, suffers infection organ damage or other injury, the body mounts an immune response, cleaning up the dead and damaged cells, killing bacteria and cells infected with viruses, and stimulating re-growth and repair. Unless the injury occurs to the brain, spinal cord or optic nerves. Certain components of the central nervous system are ''immune-privileged,'' that is, they are cut off from the immune system by barriers that serve to protect the central nervous system (CNS) from degenerative disease. The blood brain barrier, which prevents immune cells from entering the CNS, is backed up by a molecule called immune privilege factor (IPF) that inhibits the few immune system cells which do make it in. Says Adrian Harel, PhD, manager of Proneuron Biotechnologies Ltd., "This situation is great for preserving the integrity of a healthy neural network, but it means that immune cells aren't there to help when you are sick or suffer a CNS trauma." Michal Schwartz, MD (PhD), scientific founder of Proneuron and a neurobiologist at the Weizmann Institute of Science, devised a way to circumvent this barrier by placing immune cells, specifically macrophages, at the site of injury. Macrophages clean up cell debris and secrete a collection of factors— cytokines, growth factors and interleukins— which stimulate and support axonal growth. Based on 20 years of research conducted by Dr. Schwartz, Proneuron will develop new cell therapies and treatments for neurological disorders such as multiple sclerosis, Parkinson's disease and Alzheimer's disease, ophthalmological disorders including anterior ischemic optic neuropathy and glaucoma; and immune disorders. In rat models of spinal cord injury, Proneuron has demonstrated proof-of-concept of its CNS regeneration approach. Scientists paralyzed rats by severing the spinal cord. After two weeks of paralysis, researchers transplanted autologous macrophages, which had been activated using a proprietary technique, into the spine of one group of animals. The control group received a local transplant of the growth medium used to grow and JUNE 1999 prime the macrophages. After 12-16 weeks, the rats that had received the activated macrophages regained the ability to move their hind legs; some were also able to move their tail, as measured by the BBB scale, an international scale used to measure muscle movement recovery. "The animals may never regain 100% of their muscle movement, but this is a huge leap compared to what can currently be achieved," believes Harel. All the rats in the control group remained paralyzed and showed no signs of recovery. The macrophage therapy was also tested using a transected optic nerve as a model. After treatment with activated macrophages, axons regenerated. Schwartz demonstrated axonal continuity by showing the passage of colored dyes along the optic nerve to the retina. Furthermore, electrophysiology measurements showed conductivity of signals along the nerves. "The fact that electrical signals are going from the eye to the brain is strong evidence that neural function has been restored," claims Harel. Based on animal models, the optimum therapeutic window for this therapy is within 2-4 weeks following the injury. Therefore, this therapy would not be an option for patients who have sustained injuries months or years ago. The company hopes to begin clinical trials for its autologous macrophage therapy in the third quarter of 1999. It has filed an IND with the FDA to begin trials in Israel. Proneuron plans to complete Phase I in Israel before investing resources to build cell processing centers in the US. Proneuron is developing another cell based therapy to combat the secondary neural degeneration that follows injury. Cells damaged or killed by the initial trauma release chemicals that in turn cause the death of adjacent cells. While many companies are attempting to develop neuroprotective drugs, Proneuron feels it is unique in taking a cell therapy approach. The therapy will involve taking a sample of a patient's own Tlymphocytes, multiplying and sensitizing the population against a specific epitope, and then systemically reintroducing the T-cells into the patient. "The T-cells hone in on the site of the injury, because they have been sensitized, and attach to the surviving cells or axons to prevent them from dying," says Harel. In studies published in the January issue of Nature Medicine, Schwartz showed that rats with a partially crushed optic nerve retained 300% more retinal ganglion cells after treatment with activated T cells specific for Volume 4 Number 6 myelin basic protein, compared to rats that were treated with activated T cells specific for other unrelated epitopes. Proneuron's T cell therapies are still at the preclinical stage. Harel estimates that they will require another nine months of preclinical studies followed by about six months to plan a protocol for clinical trials. The company hopes to file an IND within the next 18 months. Proneuron's ultimate goal would be to combine its macrophage and T-cell therapies to achieve nerve regeneration, and to also prevent secondary degeneration. The company hopes to establish other cell processing centers outside Israel to handle the proliferation and activation stages for both the macrophage and the T cell therapies. Long term plans include collaborations with big Pharma to help with the marketing aspects and the creation of cell processing centers. In the field of immunology, Proneuron hopes to develop drugs based on its identification of a small peptide called 'Immune Privilege Factor' (IPF), which has potent immunosuppressive and antiinflammatory properties. IPF is found in the brain and "works like steroids, without the side effects," according to Harel. In animal models, IPF has demonstrated potential against such neurological disorders as multiple sclerosis as well as ophthalmological diseases, uveitis, and corneal transplant rejection. Although the least developed of Proneuron's programs, it is the company's most promising project in terms of the huge market for a less hazardous alternative to steroids, Harel believes. Proneuron has acquired worldwide exclusive licenses to all three of its core technologies in exchange for royalties, from YEDA Research and Development Co. Ltd., the commercialization arm of the Weizmann Institute. YEDA holds all the patents for the work done in animals: Proneuron will share the patents for human applications. The company is currently in the process of filing more patents for new technology and indications. Proneuron was founded in 1996 with $3.5 million in initial seed funding from the Hudson Investment Group. Another $3.5 million came from four Israeli VC firms: D.S. Polaris Ltd., Lapid Medical Ventures, Nassua-Zannex Venture Capital Management Ltd., and Infinity Venture Capital Fund L.P.