With its eyes on curing HIV, a local biotech company is merging with a Plano firm to ramp up drug development and testing.
Rockwall-based BioClonetics Immunotherapeutics has signed a non-binding letter of intent to merge with drug development company Enzolytics in an effort to study the effects of treating HIV by combining their drug therapies.
“The combination of our two companies' proprietary technologies and products is a once in a lifetime opportunity that should benefit both of our organizations letting us achieve more together than we could apart,” said Harry Zhabilov, Enzolytics CEO, in a prepared statement.
BioClonetics was launched in 2009 by co-founders Charles and Joseph Cotropia. The company has developed a technology for the creation of human monoclonal antibodies fight against infectious diseases like HIV and influenza. It’s parent antibody is focused on HIV-1, called Clone 3, is in the final stages of development and has shown to be effective against more than 95 percent of the virus’ substrains.
According to angel.co, BioClonetics has raised about $323,000 and has a valuation of about $10 million.
“…for the patient, the Clone 3 antibody immunotherapy will be remarkably different -- it will be safer and provides a much needed immunotherapeutic cure rather than requiring lifelong treatment, and is substantially less expensive,” BioClonetics states on its website.
Financial terms of the merger were not immediately available. However the companies said more information would be released as the deal finalizes. As part of the move, Charles Cotropia will become the CEO of the merged company. Zhabilov will serve alongside Joseph Cotropia as co-chief strategy officers.
Following the announcement of the intent to merge, Enzolytics, which trades on the OTC markets under the ticker symbol ENZC, saw its shares close 200% higher than the previous day.
After the ink is dry on the merger, the combined BioClonetics and Enzolytics plan to conduct studies on the combination of their respective parent monoclonal antibody therapies in animal studies, while it begins the process of identifying a clinical research organization and prepare to submit applications with the FDA.
Enzolytics’ ITV-1 therapy has completed Phase II clinical trials at a clinic in Bulgaria and is working on gaining FDA approval for the product in the U.S.
BioClonetics said that because of the similar structures of HIV and COVID-19 and the efficacy of its Clone 3 antibody in fighting HIV, the company has been asked by the National Science Foundation to submit a funding application for development of a COVID-19 antibody. The company currently has applications pending with the NSF and the National Institutes of Health.
“We look forward to discovering how ENZC's ITV-1 treatment can be used with our monoclonal antibody platform to synergistically improve our such antibodies for treating HIV,” Charles Cotropia said in a prepared statement.
Despite the pandemic’s financial impact on some industries, biotech companies in North Texas have been seeing increased activity during the crisis. While VC funding during Q2 marked a nearly 50 percent year-over-year decline, biotech and health care startup funding has remained relatively strong.
In August, Dallas-based Taysha Gene Therapies closed on an oversubscribed $95 million Series B round led by Fidelity Management & Research Company. And Later that month, Southlake startup OncoNano Medicine received a $9.97 million grant from the Cancer Prevention and Research Institute of Texas.
According to Venture Capital Journal, through June, VCs have put more than $14.8 billion into companies in this health care and biotech, putting it on track to surpass the $23 billion that was raised for biotech companies in all of 2019.
