Developing next-generation drugs for the treatment of central nervous system disorders and cardiovascular disease is a long and costly process. Azevan Pharmaceuticals, a Bethlehem-based early-stage company, believes the way to get there is through strategic partnerships.
| Azevan's strategy is tied to the evolving nature of the pharmaceutical industry, where major companies are increasingly relying on in-licensing for new products, says CEO Neal Simon. |
Azevan is building on previous discoveries that the naturally occurring chemical arginine vasopressin (AVP) plays a significant role in anxiety, depression, menstrual-related disorders and the pathophysiology of congestive heart failure (CHF).
Neal Simon, Azevan CEO, notes that there are three distinct vasopressin receptors in the central nervous system and periphery. Azevan's current focus has been on developing novel antagonists that target these receptors.
"With support from Ben Franklin and the National Institutes of Health, we were able to establish the credibility of the company as a producer of novel clinical candidates," says Simon.
A Long Road from Lab to Pharmacy Shelves
The development of new drugs takes years and millions of dollars -- a formidable barrier for startup and early stage companies. Many bio-pharmaceutical discoveries start in university research labs in the pursuit of knowledge, but tech transfer activities are now an increasing part of higher education. Simon, however, was part of a different model, and in 1999 he joined Azevan's predecessor, Serenix.
Simon, a faculty member in the Biological Sciences Department at Lehigh University in Bethlehem, helped develop a partnership between the company and the university through Ben Franklin and the NIH STTR and SBIR programs. He also took advantage of BFTP's incubator on Lehigh's campus.
A Model for Success
Azevan's success to date -- they recently closed on a $5.5 million Series A round of venture funding -- exemplifies how partnerships between universities, economic development agencies and the private sector can help develop much-needed new drugs. The company expects its first clinical candidates to enter human trials in fall 2006.
BFTP recognized the potential in Azevan and made $408,000 in investments in the company. The funds helped the company develop its first antagonists for the target receptors and provided essential financial support.
"Ben Franklin was the initial investor in the company and the funds were critical for launching our drug discovery and development efforts," Simon says. "The investment validated the company and helped us secure additional funds, including $2.5 million from the National Institutes of Health and a half-million dollars from the Life Sciences Greenhouse of Central Pennsylvania. From there, private investors became very interested in what we were doing. BFTP served as an excellent bridge from public to private capital."
Moving Along
Azevan's strategy is tied to the evolving nature of the pharmaceutical industry, where major companies are increasingly relying on in-licensing for new products.
"We expect to bring drugs through IND, into Phase I or Phase II clinical trials, and then license the technology," says Simon. "We have specialized expertise and a strong pipeline. We're able to conduct pre-clinical and early-stage clinical work very efficiently, which puts us in a position to then partner with major pharmaceutical companies. The later stages of development are very expensive in terms of infrastructure and dollars. Those costs will be assumed by a strategic partner in the industry."
From the November/December 2005 issue
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