NovaQuest Capital Management announced a $20 million (USD) product financing agreement with an Israeli biopharmaceutical company, Mileutis to help mitigate the use of antibiotics in animals.
The new investment will drive the development and commercialization of Mileutis’ novel, biologically sourced, and residue-free therapies for animal health.
For NovaQuest this is the first investment in the animal health care field and first in an Israeli startup.
Founded in 2004, by David Iscovich and his father, Jose, Mileutis is in advanced stages of development in the U.S., EU, and Israel of an innovative product that addresses the main concern in the dairy industry: bovine mastitis.
The disease is the most frequent disease in dairy herds worldwide and causes 1 death every 15 minutes in the US alone, and 700,000 deaths each year globally and predicted to rise to 10 million, according to the Center for Disease Control.
David Javier Iscovich, CEO and co-founder of Mileutis, stated: “By replacing antibiotics in animals such as dairy cows with safer biopharmaceuticals, we will protect animals and save people from the health damages associated with the development of antibiotic resistance. Our platform, which acts by stimulating the immune system, will pave the way towards the development of additional therapies for both animal health and human health. The funding from NovaQuest is more than a vote of confidence in our company and products – it is a vote of confidence in our vision.’’
NovaQuest Capital Management, with $2 billion under management, is an investor in life sciences and healthcare. The firm was set up 20 years ago to provide strategic capital to life sciences and healthcare companies.
“We believe Mileutis’ product line and technology platform represent a paradigm shift that is much needed in the industry that will not only improve animal and human health by enabling more sustainable milk production but will also enhance the wellbeing of dairy cows,” said Brian Axe, NovaQuest principal.