Finnish neuroscientific expertise: a good investment target [19.8.2011]
Now arising in Finland is a cluster of neuroscience companies that is both highly interesting, even from an international perspective, and whose operation is supported by high-level, versatile basic research. Prospects are good, as the global market in neurotechnology - a field of technology related to diseases of the central nervous system - is in the region of 100 billion euros and grows by 3-4 per cent annually.19.08.2011 10:19
Hermo Pharma launches clinical trials
One Finnish neuroscience pioneer is Hermo Pharma Oy, which started operations in 2008. The company operates in close collaboration with the University of Helsinki and develops drug candidates for treating diseases of the central nervous system and the eye.
The development projects that have progressed the furthest include the treatment of adult amblyopia, or functionally impaired vision, with a drug and a training method, and the treatment of Parkinson's disease using the cerebral dopamine neurotrophic factor (CDNF). Hermo Pharma owns the commercial rights to the CDNF protein family.
"We are the first in the world to work on developing therapy for adult amblyopia based on the plasticity of the brain. The market size is appreciable, as about two per cent of adults, or over 20 million people in the Western world, have the disease," says Henri Huttunen, Chief Scientific Officer at Hermo Pharma.
The clinical trials related to amblyopia have been started and in the best case, the product will be on the market in 3-4 years. The product can offer some protection, for example, against the significantly increased risk of being involved in a traffic accident.
The development of therapy for Parkinson's is spurred by the considerable amount of funding granted to the university's research team by the Michael J. Fox Foundation of the USA. The intention is to start clinical trials at the beginning of 2013.
"One of our strengths is the technological basis - we have several excellent drug candidates, which we will develop into products within the limits of the company's resources," Managing Director Juhani Lahdenperä and Henri Huttunen explain. The company's earnings are based on partnering with the pharmaceutical industry operating on international markets.
In 2010, Hermo Pharma gathered seed funding, which is the responsibility of the University of Helsinki funds and Veraventure Oy. Product development has also received a large funding input from Tekes, the Finnish Funding Agency for Technology and Innovation. In 2011, a funding round will be organised to enable the company to develop its amblyopia product to the first possible partnering point.
"The value of our product portfolio is enhancing rapidly, the risks are under control and there is market pull," Lahdenperä and Huttunen summarise the situation.
A significant financing event in Helsinki
"Neurotechnology is an interesting and topical field because the population is ageing and neurological diseases become more common with increasing age. The need for treatments has also been increased by the changes in working life that require that the brain is in a better condition than was required previously," says Indrek Tammeaid, Programme Director of Greater Helsinki Promotion Oy.
In his view, Finland has good prerequisites for becoming an internationally prominent actor in the neuroscience business. "We have a great deal of scientific expertise and good technologies. The actors, though, should be linked more closely, and in a greater variety of ways, to the global value networks in this business. We need new channels enabling researchers and companies to meet representatives of the pharmaceutical industry and biotechnology companies as well as investors. That would lead to the birth of new companies in Finland."
An important milestone, and acknowledgement for Finnish know-how, is the international financing event, The European Neurotech Investing and Partnering Summit, that will be held in Helsinki on 7-8 September, 2011.
According to Tammeaid, the greatest significance of the event lies in the fact that companies and research teams can meet financiers, which is necessary for concluding contracts. The event also highlights financing know-how and financing needs. "If only Finnish investors also realised that it is worth investing in our neurotehnology expertise," he hopes.
Text: Paula Böhling
Translation: AS-English Specialists Oy