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Rainbow BioSciences, the biotech subsidiary of Rainbow Coral Corp. (OTCBB: RBCC), and Amarantus BioSciences, Inc. (OTCQB: AMBS), a biotechnology company developing new disease-modifying treatments and diagnostics for Parkinson’s disease and Traumatic Brain Injury, have finalized the framework of their proposed joint venture (JV) and will execute material definitive agreements within 30 days.
The JV’s first priority will be to advance Amarantus’ NuroPro Parkinson’s Diagnostic Blood Test (“NuroPro”) towards commercialization. NuroPro works by identifying differentiated levels proteins and peptides in the blood of patients who have Parkinson’s disease, versus those who do not.
Under the terms of the pending agreement, RBCC will invest $150,000 in various funding tranches to re-establish the NuroPro 2D Gel platform and re-analyze samples from the previous Phase 1 clinical trial. Thereafter, the JV will further fund the Phase 2 clinical trial. RBCC will be repaid for their investment out of proceeds from the sales generated by NuroPro and will share revenues once the initial investment is repaid. RBCC has received a commitment from private, outside sources to provide the capital necessary to fund the JV.
NuroPro has completed a Phase 1 human clinical trial, and JV will initiate a Phase 2 clinical study upon successfully repeating the Phase 1. Upon completing Phase 2, RBCC and Amarantus expect NuroPro to begin generating revenue through sales under a Clinical Laboratory Improvement Amendment (CLIA) certification.
“We’ve identified valuable upside in NuroPro, and we expect this project to begin paying for itself within a short period of time,” said Amarantus President & CEO Gerald Commissiong. “The ability to advance NuroPro that will simultaneously generate revenue while bolstering our MANF program by allowing our clinical researchers to more efficiently select and monitor Parkinson’s patients in our therapeutic program represents a tremendous opportunity. The timing of initiating the JV will allow us to begin moving NuroPro forward in 2013.”