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The University of Auckland scientist behind a tissue-repair drug has secured US backing to commercialise the product, which is aimed at a market worth billions.
Colin Green, professor of ophthalmology at the university, is the co-founder of two companies set up to develop Nexagon, one in New Zealand called CoDaTherapeutics and one in the US with the almost identical name CoDa Therapeutics.
Green said the drug - developed in conjunction with University College, London - could stop tissue damage spreading, damp down inflammation and make wounds close faster.
The US firm now holds the intellectual property rights to Nexagon and the co-founders there have sourced US$10 million ($14.9 million) of venture capital for human trials.
Trials are planned to start within 12 to 18 months and if successful could see the drug reach the market within five years.
Taking the project to the US meant more money, a better deal and access to expertise with a track record of setting up biotech companies, Green said.
Most New Zealand venture capital funds could have put in $2 million or $3 million, he said.
"But because of the risk involved they then want to take 80 per cent of your company or something and two or three million doesn't actually take you very far in the pharmaceutical drug development area."
The destination for Green was America but the route he took to get there was a little different.
Generally local companies set up US offices in an attempt to access funding and expertise. "We've done it a different way in that we've set up an entirely separate company in the United States."
Having a presence in the US helped when it came to funding.
"If they can drive 25km to the company they've invested in they'd prefer to do that ... and when they start looking at New Zealand where they have got no day-to-day control of where their money is being spent ... they don't like it."
The New Zealand company has been contracted to carry out the first trials and will receive royalty payments from its US counterpart or any subsequent buyer.
The initial trials of Nexagon would be for treating eyes, where damage through injury or surgery was a serious problem, Green said.
"Build-up of scar tissue as a result of damage can cause vision defects and we need to get rapid closing of the wound to prevent infection and reduce pain."
Channels between biological cells used normally for communication can spread damage during injuries such as burns, Green said. Nexagon, applied via a slow- absorbing gel, stopped the cells making channels.
The gel could be applied to eyes and skin wounds, with possible developments including burns, grafts and even surgery on joints.
