BioTech start up seeking $ 10 M in Series A funding - Augusta, Georgia

Funding Request:

Overview. EMThrax, LLC (“EMThrax” or “the Company”) is leveraging a new breakthrough, patent-pending platform to develop, produce, and distribute human vaccines at a fraction of the cost and time of traditional vaccines, starting with its flagship anthrax vaccine and followed by Campylobacter jejuni (Traveler’s Diarrhea) for both military and civilian use. The platform technology is unique in that it is 100 % natural without the need of genetic manipulation and can be applied to almost any bacteria, virus or fungi to generate a safe and effective vaccine.

Company. EMThrax is a startup company based at the Life Sciences Business Development/Innovation Center at the Medical College of Georgia (MCG) in Augusta, Georgia. The Company was founded by Dr. Michael Stump and Ms. Erin Worthy in August 2006 based on work that these individuals performed. Its strategy is to develop the vaccine platform and products, market them in advance, work to obtain FDA approval to begin selling products, expand their line, and prepare for their exit strategy. The Company is protecting its intellectual property (IP 100 % owned by founders), pursuing alliances and funding, and expects to have products ready in about 3 to 7 years.

Products and Services. EMThrax has developed an entirely new 100 % natural platform, which it is using to develop new vaccines. Its flagship vaccine is an Anthrax vaccine for the military that prevents infection before it starts, can be manufactured with consistent quality and eliminate Anthrax as a bioweapon. Another product is a Campylobacter jejuni vaccine, which should prevent some forms of the common Travelers’ Diarrhea. Other vaccines are also being developed, such as E. coli and Shigella flexneri to complete a trivalent Travelers’ Diarrhea vaccine.

Markets. Vaccines meet large market demands and are providing new growth to the pharmaceutical industry. EMThrax is particularly targeting biodefense markets, including the Department of Defense, Department of Health and Human Services and the Department of Homeland Security, followed by friendly foreign governments. Market size vary significantly depending upon many factors, and it appears that Anthrax market opportunities could lead to sales of $180 million in a single year to protect government personnel to as much as $9 billion if the entire U.S. population is protected. EMThrax has several competitors; however its competitive advantages are many.

Operations. The Company is located in the incubator at the LSBDIC on the MCG campus, which also includes a complete animal testing facility. EMThrax has charged a complete lab-to-market plan that includes the steps of preclinical R&D, clinical trials, and manufacturing, distribution, and marketing. At present, EMThrax is working with a very large defense contractor and plans to submit one or more contracts to various government agencies, specifically the DoD, for $ 50 Million in the next year for Phase I studies of the platform technology (letter of intent in full BP).

Selling. The Company’s strategy is to pursue U.S. government funding to develop its platform and biodefense vaccine products made using its 100 % natural platform. Its founders have already begun marketing to specific government agencies, including its partnership with a large defense contractor.

Management. EMThrax was founded by Dr. Michael Stump and Ms. Erin Worthy. Dr. Stump has performed extensive research on Anthrax and vaccines, and Ms. Worthy has worked on the development of several animal models for various diseases and is about to complete her MBA in summer 2008. Dr. Anton-Usala, MD has agreed to join EMThrax’s board of advisors. Dr. Usala raised over $ 20 Million in private funding for a Phase II medical devise and currently sits on President Bush’s stem cell review board. Upon completion of raising Series-A funding other valuable experts will be included on the board of directors and/ or board of advisors that would add value to our company.

Finance. EMThrax is currently seeking $ 10 Million in Series-A funding. To date the company raised $115,000 in private seed funding and received a $50,000 grant from the Georgia Research Alliance (GRA) for development of its Campylobacter jejuni vaccine. An additional $100,000 grant from GRA can be realized upon completion of Series-A funding. Furthermore, EMThrax is working with a large defense contractor and plans to submit one or more contracts for $ 50 Million for Phase I trial of the vaccine platform within the next year. If a Phase I contract is awarded and all milestones completed, then further government contract are expected, which increase significantly at each stage. Thus, it is anticipated that only private funding needed, through product development and FDA approval, will be Series-A funding, since government contracts will cover the remaining expenses and include a fee structure.