>> Nexia Biotech gets lift from Canadian defense deal
Mon Sep 20, 2004 03:27 PM ET
OTTAWA, Sept 20 (Reuters) - Shares in Nexia Biotechnologies Inc. (NXB.TO:) added 11 percent on Monday after the company announced a three-year deal with Canada's defense department to speed development of its Protexia antidote for nerve agents.
Defence R&D Canada will spend C$2 million ($1.55 million) to study how Protexia, derived from genetically altered goat's milk, performs in various types of chemical weapon exposure.
Researchers will examine how Protexia works when it is given before or after nerve gas is encountered, and how it interacts in combination with other therapies, such as oximes, which essentially kick-start the nervous system.
Protexia has been shown to protect animals from the toxic effects of multiple lethal exposures to a broad spectrum of chemical agents. Further research and testing on animals is required before the protein can be tested for human use.
The product is a naturally occurring protein found in human blood in minute quantities.
Data from the study will be used in Nexia's investigational new drug filing with the U.S. Food and Drug Administration, which chief executive Jeffrey Turner said is planned for late 2005 or early 2006.
The so-called counter-terrorism antidote falls under an animal efficacy rule, which requires the proof of safety in humans and efficacy in animals, Turner said.
Normally, proof of both safety and efficacy in humans is required, a more lengthy application process.
Shares in Nexia rose to C$1.20 on the Toronto Stock Exchange after the news, still well off their year high of C$2.10. <<
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