New German Biotech Co, Artemis, On Way

Plans to form a new German biotechnology company, ArtemisPharmaceuticals, have been announced, with USA-based Exelixis Pharmaceuticals acquiring a minority stake in the group cofounded by Klaus Rajewsky, a leading mouse geneticist, Christiane Nuesslein-Volhard, the 1995 Nobel Prize Winner in medicine, and former head of biotechnology of Bayer, Peter Stadler.

Artemis aims to identify and validate novel drug screening targets and therapeutic proteins using genetic approaches in model vertebrate systems. The new company will initially focus on bone and cartilage development, cancer, inflammation and development of the hematopoietic and lymphoid systems, using Artemis' know-how in zebrafish and mouse genetic technology and Exelixis' expertise in fruit flies.

Details of funding for both the new venture and the strategic alliance have not been disclosed, although industry analysts believe that Artemis will start with some 7 million Deutschemarks ($3.9 million) in equity to minimize dilution of the founders' holdings. Dr Stadler told the Wall Street Journal that the company would expect to double its seed capital through low-risk loans and various state and federal grants. If Artemis manages to line up a series of collaborations with major drug firms, he said, it may pursue an initial public offering.