Health care reform funds go to local biomed companies

Six Kalamazoo-area companies are getting federal tax credits or grants as part of the Qualifying Therapeutic Discovery Project Program, an initiative created under federal health care reform legislation.

Local companies that received grants were:

• Metabolic Solutions Development Co. — $ 244,479.24 for its work with novel insulin sensitizing agents for therapy in Type 2 Diabetes.

• NanoVir LLC — $ 244,479.24 for its therapeutic development of antiviral  compounds that target human papillomaviruses (HPV).

• NephRx Corp. — $ 244,479.24; $ 91,845.50; and $ 152,633.74 for its treatment of acute kidney injury and treatment of oral mucositis.

• ProNAI Therapeutics Inc. — $ 30,965 and $ 213,514.24 for a phase 1 study of PNT2258 in patients with advanced solid tumors.

• RealBio Technology Inc. — $ 93,800 and $ 150,679.24 for biorealistic tissue models for drug discovery and testing.

• Tolera Therapeutics Inc. — $ 244,479.24 — therapy for chronic immune disease.

Altogether, 58 companies statewide received nearly $18.375 million from the program, says MichBio, the trade association for bioscience growth in the state.

“The award of the grants is a great boost for Michigan’s biotech start-ups, and in particular the timing couldn’t be better as it comes during very challenging economic times when companies are seeking capital investment from any source to sustain their commercialization efforts,” says Stephen Rapundalo, MichBio president and CEO.

The program assists young companies that typically don’t have the revenues, much less the profits, or the ability to recoup their expensive R&D costs, by allowing them to reach their business milestones, grow jobs and contribute to the state’s economic revialization, Rapundalo says.

The U.S. Treasury Department reported that it received more than 5,600 applications requesting more than $10 billion.

Writer: Kathy Jennings
Source: Stephen Rapundalo, MichBio