Hebrew University of Jerusalem has spun out NewStem to develop a stem cell-based approach for predicting whether a cancer patient is likely to respond to chemotherapy.
NewStem, an Israel-based precision chemotherapy technology spinout from Hebrew University of Jerusalem (HUJ), raised $4m in a seed round today from a US-listed shell entity called Hollywood Media.
Hollywood Media is to rebrand as NovelStem International following the transaction, which includes an initial $2m sum provided in return for 20% equity interest.
The remaining $2m will take Hollywood Media’s stake to 33% should the entity choose to pursue follow-on contributions of $1m each on 12 and 18-month milestones of the original investment.
NewStem has been founded by HUJ’s tech transfer office, Yissum, to develop a library of so-called human haploid embryonic stem cells (hHESCs), mutated genes resistant to chemotherapeutic agents.
NewStem’s approach contrasts hHESCs with the genetic profile of a cancer patient’s tumours to help predict if chemotherapy is likely to be ineffective. It is currently impossible to determine whether chemotherapy will fail until the first course of treatment has been completed.
The cash will be used to drive development of NewStem chemotherapy products and services. NewStem also expects to partner pharmaceutical firms and startups to apply the haploid approach to improve reproductive health and tackle genetic disorders.
NewStem’s technology builds on the findings of chief science officer Nissim Benvenisty, who heads a hHESC-focused research lab in HUJ’s Azrieli Center for Stem Cells and Genetic Research.
Yaron Daniely, chief executive and president of Yissum, said: “NewStem is an excellent new addition to the dozens of academic-born startups rooted in the strong life science research at the Hebrew University.
“This investment provides strong support for NewStem’s goal of revolutionising the treatment of cancer through personalised, patient-centred care.”
