Israeli govt award for BrainStorm Cell Therapeutics

BrainStorm Cell Therapeutics, a developer of adult stem cell technologies and therapeutics, has been awarded a grant from Israel's Chief Scientist Office. The company will receive around $870,000 over the remainder of the current fiscal year to fund the continuing development of treatments for amyotrophic lateral sclerosis and Parkinson's disease.

This is the second consecutive year that BrainStorm will be receiving this grant from the CSO; in 2007, the company was awarded $340,000. Based on the previous studies conducted by the company, the new extensive research in ALS and the opening of its animal house, the CSO has more than doubled its grant to BrainStorm. The funding of the grant is based on a $1.8 million R&D forecast plan over 12 months.

The grant requires that the company agree to provide a 3% royalty to Israel's Ministry of Trade and Industry program, which offers incentives to high-tech and biotechnology companies to enhance their R&D. The money was designated by the CSO to further develop BrainStorm's adult stem cell technologies and therapeutics. The company's royalty obligations are capped at the amount of grant proceeds it receives from the CSO.