AM-Pharma gets 5M-euro govt loan

AM-Pharma, a Dutch biopharmaceutical company developing endogenous proteins to combat disease, is to receive a loan of up to 5.0 million  euros ($6.5 million) from SenterNovem, an agency of the Dutch Ministry  of Economic affairs, to support the development of recombinant optimized  human alkaline phosphatase as a treatment for acute kidney injury.

SenterNovem has provided the loan to AM-Pharma under the  recently-implemented InnovatieKrediet scheme. An initial amount of 2.25  million euros has been committed for product manufacturing and will be  paid out in advance of a number of agreed development milestones. A  further 2.75 million euros for subsequent clinical development up to  Phase II proof-of-concept can be requested by AM-Pharma in 2010. This  interest-bearing loan will have to be repaid only after successful  development of the product.

Chief executive Bart Wuurman said: "I am very proud that AM-Pharma is  the first Dutch biotech company to benefit from this scheme. This type  of financing is important to us as it will further strengthen the  funding of our company. We also see this loan as recognition of the high  medical importance of the drug we are developing."