(1888PressRelease)
November 14, 2008 - Dubai, United Arab Emirates - Midas International announced today that it has come to an agreement for up to $35 million in venture capital financing for two separate companies involved in the development of orphan drugs (Drugs for diseases that afflict small numbers of people). At this time details of the agreements were not disclosed, however it has been disclosed that the first round of funding would come immediately from Midas International with the later rounds coming from a consortium of their clients.
“Midas International has long supported the biotech industry. We believe that not only is it the right thing to do as global citizens, but from a business perspective as well,” said Kenneth Emerson, Director of Business development. “Several years ago we funded a small biotech firm in the U.S. that was developing a drug to protect the central nervous system. That drug is now used in treatments of more than a dozen diseases including Multiple Sclerosis.”
The companies that Midas has agreed to fund will both be receiving matching grants from a U.S. Foundation. The Dollar for Dollar agreement allows companies to effectively pursue treatments to ailments that often go untreated. Midas in return for its early round funding efforts will have a seat on the board of both companies and a right of first refusal on certain next steps the companies may take. The business model for investment into Orphan Drugs has been in effect since the 1983 Orphan Drug Act in the US granted special patent rights. Similar laws protect and promote this vital research and the drugs that are developed as a result in the EU.
###
