Vekselberg’s Renova Group invests in cancer drugs developer

A developer of drugs against cancer Novelos Therapeutics (U.S.) received about $2M from Renova Group Company owned by Viktor Vekselberg. The funds will be used to launch an effective means of tumors detecting. A plant will be built for this purpose in 2013 for $3M, and will focus on the production of the I-124-CLR1404 drug, designed to detect cancer.

Under the deal, Renova gained 20% (about 2M ordinary shares) of the pharmaceutical company, as well as the right to buy another 1M shares at $1.25 per share for five years or 2M shares at $1 for 90 days.

We are very grateful that such company as Renova drew its attention to our developments - the president and CEO of Novelos Harry Palmin says. - First clinical trials of I-124-CLR1404 showed positive results, so now we plan to focus on this drug. Recall that now the drug is in clinical trials for the detection of 11 different types of tumors.

Renova Group of Companies is controlled by Viktor Vekselberg who is the chairman of its board of directors and the president of Skolkovo. In addition to the newly acquired shares of Novelos, Renova has also participated in Russian company Natur Produkt International, which was sold to Canadian drug manufacturer Valeant Pharmaceuticals for $180M.

In addition, Renova manages the Stenteks project on the development and production coronary stents in Russia (devices that are placed in the lumen of hollow organs and widen the site that is narrowed by pathological process) and catheters for patients with acute coronary syndrome.