a s c e n i o n: Ascenion helps launch first German Primate Centre spin-off: Encepharm

Ascenion helps launch first German Primate Centre spin-off: Encepharm

Munich and Göttingen, February 8, 2005 – With the active support of Ascenion, the German Primate Centre (DPZ) has launched its first spin-off company: Encepharm GmbH.

On a fee-for-service basis, Encepharm offers tailored research services and preclinical studies in the fields of mental illness and neurodegenerative disease. The company addresses a rapidly expanding demand in the pharmaceutical and biotechnology industries, where the lack of suitable research models for diseases of the central nervous system is a particular obstacle to the development of new therapies. The Encepharm team has long-standing expertise in the area and exclusive access to specific animal models developed at the DPZ for research into depression, Parkinson's disease and multiple sclerosis. These include an animal model in tree shrews that is unique world wide and has already allowed new insights into the pathophysiological mechanisms underlying stress and depression.

Numerous enquiries from industry have shown the enormous significance of this model in pharmaceutical research and development. “However, it was only through the expert assistance of Ascenion that the idea of founding a new company was born and eventually realized”, said Professor Eberhard Fuchs, CEO of Encepharm. Professor Fuchs and Ascenion have developed the Encepharm business plan jointly. Furthermore, Ascenion has supported the company’s founders during contract negotiations in the start-up phase and in all operational aspects. Encepharm will closely cooperate with the DPZ and may use DPZ know-how, infrastructure or services in return for an appropriate fee.

“The serviced-based business model and comprehensive co-operation agreements with the DPZ and other research institutes in Göttingen have given the founding team a ‘running start’ with only moderate start-up financing,” explained Dr Christian Stein, CEO of Ascenion. The first contract with a Belgian pharmaceutical company has already been successfully completed. “Encepharm is therefore among the very few Biotech companies in Germany with earnings in their first year of operation. We are delighted by this successful start and will continue to support Encepharm throughout its growth phase”, continued Dr Stein.

Ascenion will take a share in Encepharm. Should Ascenion subsequently sell its equity in the company, the proceeds will go to the Life-Science Foundation for the Promotion of Science and Research. The Foundation will in turn make this money available for publicly funded research projects.