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Modigene Awarded Israeli Government Grant to Support Development of Its Longer-Acting Interferon Beta
Date:8/5/2008

OCS is an important non-dilutive cash resource for Modigene and represents another validation of the potential of our technology and of our second lead candidate," said Abraham Havron, Ph.D., Chief Executive Officer of Modigene. "The OCS has already awarded Modigene funds in support of our human growth hormone (hGH-CTP) product candidate and we are delighted that our IFN-Beta-CTP program has now also been selected for support. This visionary OCS program is particularly attractive for Modigene because it does not require any repayment until the product is generating revenue. We are grateful for this valuable source of non-dilutive capital."

Under the terms of the grant, Modigene is required to repay the OCS the sum of the grant plus accrued interest through a series of payments that begin only upon successful commercialization of the IFN-Beta-CTP product, or other products developed at the company with its CTP technology.

ABOUT CTP

Modigene's technology was discovered by researchers at Washington University in St. Louis and is based on a short amino acid sequence, the Carboxyl Terminal Peptide (CTP). CTP occurs naturally in humans and when attached to a therapeutic protein, extends the time that the protein is active in the body. The potential utility of the technology has been demonstrated by Schering-Plough, which licenses the CTP technology for fertility applications only. On July 8, 2008 it announced successful top-line data from its Phase III ENGAGE trial demonstrating that women receiving a single injection of the fertility drug FSH-CTP achieved the same pregnancy rates as women receiving seven consecutive daily injections of commercial FSH. This 1,509 patient trial was the largest double-blind fertility trial ever conducted. Modigene is using the same CTP technology to extend the duration of action of other therapeutic proteins. It has an exclusive license from Washington University to the CTP technology for use with all therapeutic protei
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