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International Medical Ventures Offers Exciting Opportunity to Participate in Growing Genetic Testing Industry

International Medical Ventures Offers Exciting Opportunity to Participate in Growing Genetic Testing Industry

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Published by kalai2
International Medical Ventures - an early stage life science company - offering significant growth opportunities in India’s emerging clinical trial industry.
International Medical Ventures - an early stage life science company - offering significant growth opportunities in India’s emerging clinical trial industry.

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Published by: kalai2 on Aug 08, 2013
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International Medical Ventures Offers Exciting Opportunity to Participate in Growing Genetic Testing IndustryInternational Medical Ventures - an early stage life science company - offeringsignificant growth opportunities in India’s emerging clinical trial industry.Basel, Switzerland, August 06, 2013 -- International Medical Ventures (IMV) is in the initial phase of building its full service international clinical trial organization (CRO) which will provide tests for the BRCA marker as well as drug development and therapeutic solutions. IMV already has in place a highly qualifiedmanagement team and advisory board with extensive years of in-depth clinical trial and drug development experience. The Company’s Chief Medical and Scientific Adviser, Prof. Dr. A.K. Desai, has comprehensive knowledge of the life sciences industry with a focus in cytology and oncology drug development. As a result of the Company’s first-class management team and high-standard practices, it has established relationships with several major Swiss Pharmaceutical companies and already has contracts in place. Additionally, IMV has a memorandum of understanding with an established Indian research clinic with expertise in oncology to supply the BRCA 1&2 tests. With the cash flow generated through supplying BRCA test, thecompany will also be developing its proprietary therapies which could provide significant upside to IMV’s valuation.Growth Opportunities in BRCA Gene TestingFaster, cheaper DNA testing is revolutionizing medical care and nowhere has the impact been felt more strongly than inbreast cancer. Genetic tests can predict the susceptibility of a candidate to developing hereditary breast cancer with 70-80% accuracy. Women who wanted genetictesting for mutations in BRCA1 and BRCA2 used to have to use the Myriad test, which costs around $4,000 and is not always covered by insurance. However, on June 13, 2013, the Supreme Court made a unanimous decision to bar the patenting ofnaturally occurring genes. The decision effectively breaks Myriad’s monopoly on BRCA testing and paves the way for innovative newcomers to offer new and less expensive ways for testing BRCA. The Supreme Court Ruling is also significant in opening cancer research and new drug development. Research labs that previously could not test for BRCA genes in their patients due to fear of being sued are freeto research the role of BRCA gene in cancers.As genetic testing becomes an integral and growing part of healthcare provisionsand services, the global genetic testing market is expected to grow to over $10billion by 2015 according to Renub Research. Specifically, cancer genetic testing is expected to lead the industry with the greatest growth due to the rising cases of cancer. With breast cancer being the most common cancer among women inboth the developed and developing world, Global Data estimates that the global predictive breast cancer gene testing market will grow to US$1 billion by 2018 for a compound annual growth rate (CAGR) of 14% from 2011. The bad BRCA1 and BRCA2genes, the most common cause of hereditary breast and ovarian cancer, are present in roughly 1 in 400 women and give women an elevated risk of ovarian and breast cancers. The BRCA1 or BRCA2 gene varies from individual to individual, on average that risk is of the order of 65%. Screening for BRCA1 and BRCA2 mutationscan provide valuable information needed for preventive monitoring and therapy. Currently, the United States represents the largest market for hereditary breastcancer gene testing however; India has a great need for low-cost gene testing based on a breast cancer mutation prevalent in the Indian population.India Provides IMV Significant Strategic Advantages:Over 80,000 women are diagnosed with breast cancer in India every year making itone of the most common cancers of urban Indian women and the second most commonin the rural women. Almost a third of all breast cancer patients are believedto have familial disease pattern, and various Indian studies have reported BRCAmutations in 9–25% of familial breast cancer cases. Due to lack of awareness, themajority of breast cancers are diagnosed at a relatively advanced stage. Testing
for BRCA 1 and BRCA 2 is done neither widely nor systematically in India as thetests are expensive (approximately Rs 50,000 per test) and not easily availablein India which creates a valuable opportunity for companies that provide low-cost genetic testing. Additionally, there are several government health initiatives to increase health education, early diagnosis of cancers, and more public facilities for cancer treatment are expected to bring about the much needed improvement in breast cancer care in India.IMV will also conduct its clinical research trials in India which enables the Company multiple advantages in developing new and cost-effective drugs. India has16% of the world
s population and 20% of the global disease burden making recruitment of patients estimated to be four to five times faster than the US and UK.Another major advantage is that trial costs are significantly lower. Cost of conducting trials in India is estimated to be 50-70% lower than that in the US or UK. For instance, the estimate of the per patient cost to conduct cancer trials (the most expensive) over three-four years for India is between $8,000-$10,000, while for the US, it is between $15,000-$20,000. With a broad population, fasterrecruitment and low-cost environment, India provides the ideal landscape to improve R&D capabilities as well as develop previously uneconomical “niche busters” andemerging technologies.India’s Clinical Trail Market Still in Infancy Provides IMV Early Movers Advantage:IMV offers an excellent opportunity to get in on the ground floor of an industrythat is expected to grow from $485 million in 2010-2011 to $1 billion. Additionally, global pharmaceutical companies are increasing looking to India for futuregrowth opportunities. In a recent survey by the Boston Consulting Group, more than 70% of the 40 global biopharma executives interviewed stated they are satisfied with their R&D alliances in India, and three out of four expect to increasetheir R&D activities in India. However, growth is not only going to be accelerated by major multinational pharmas looking for more cost effective options for its clinical trial research but also the domestic companies that are experiencingrapid growth. Over the last five years the Indian pharma industry has grown at acompounded annual growth rate (CAGR) of more than 15%. According to Cambridge Consulting, the industry is expected to grow to $55 billion by 2020, up from $22billion today driven by a combination of high burden of disease, good economic growth leading to higher disposable incomes, improvements in healthcare infrastructure and improved healthcare financing.India’s Improving Regulatory Environment Support Long-term Growth:India recognizes that its strengths lie in generics, clinical research and vaccine space and is working to strengthen its collaborations with global health carecompanies. Specifically, the regulatory environment for clinical trials is improving considerably. India’s Ministry of Health & Family Welfare announced in 2013that it will create two new independent committees to oversee clinical trials, guidelines, policy, drug approval and Fixed Dose Combinations (FDCs). One committee will focus on policy, guidelines and SOPs for drug approval. The second committee will focus specifically on FDCs. Additionally, new guidelines by the Central Drugs Standard Control Organization (CDSCO) announced in February this year for the conduct of clinical research in India is expected to create a more secureenvironment for conducting clinical trials in the country. The improved regulatory environment and stringent enforcement laws enhances India’s credibility as a low-cost, secure country to perform clinical trials.IMV Plans Public Listing to Create Liquidity and Boost Shareholders ValueIMV has plans to list on the Over the Counter Market in the United States in a move to create liquidity and enhance shareholder value. Investor enthusiasm for life science companies has been increasing as valuations have rebounded from the2008 financial crisis. According to The Fenwick & West Life Science Venture Capital Barometer?,valuations for the venture-backed companies have been trending mo

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