ESBATech AG, a specialist in antibody fragment technology, is spinning out its small molecule development programme into a new company, Oncalis AG. The move comes just one month after ESBATech, a spin out from the University of Zurich, closed a €32 million series B funding round.
Both companies will base their discovery programmes around a high throughput screening platform for receptor tyrosine kinases developed originally by ESBATech’s founders when they were working at the Institute of Molecular Biology at the University of Zurich.
In addition to access the screening platform, a number of small molecule kinase inhibitors will be transferred to Oncalis. The new company will be funded by Novartis Venture Fund, BioMedinvest and VI Partners, the three investors in ESBATech’s series A round. The value of the deal was not disclosed.
Dominik Escher, CEO of Zurich-based ESBATech said the move would allow the parent company to focus on its antibody fragment portfolio. “Moving into the clinic with two distinct product classes, such as antibody fragments for inflammation indications and small molecules for oncology requires two divergent paths,” he said.
Alcide Barberis who co-founded ESBATech in 1998, and has since served as Chief Scientific Officer, will become the CEO of Oncalis.
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