HealthLinx to establish new drug development company

Australian diagnostics company HealthLinx is to spin off its CR014 drug development assets into a new single purpose company, Proaegis Biosciences. In addition, a second therapeutic compound Follistatin, with two patents targeting ulcerative colitis been in-licensed and will also be transferred to Proaegis.

Follistatin is a naturally occurring human protein inhibitor with potent anti-inflammatory and antfibrotic characteristics with demonstrated preclinical efficacy in acute lung injury, intestinal inflammation and organ fibrosis

Proaegis, in which HealthLinx will retain a 36% stake, will develop the two novel biotherapeutics, CR014 and Follistatin, to target acute respiratory distress syndrome (ARDS) and ulcerative colitis (UC) respectively. Proaegis will also be in-licensing foundation technologies from a US company that has filings in the area of combination therapies in peptide therapeutics.

The Proaegis strategy is to demonstrate clinical Phase I efficacy for CR014 and Follistatin for targeted clinical indications and then seek to partner the programmes. "While these drug candidates are early stage, they have very promising efficacy and toxicity profiles," said managing director Nick Gatsios.

CR014, the lead compound, is a novel natural human peptide that inhibits aberrant vascular permeability and associated inflammation after acute lung injury. "It appears to be a promising treatment for ARDS and similar diseases," he said.

Proaegis will embark on a private capital raising of up to A$5m (e ) fund the next 36 months" development. Initial funding will see CR014 completing a Phase I trial and Follistatin complete all pre-clinical development with filings for Phase I trials.