HAIFA, Israel, April 30, 2014 (GLOBE NEWSWIRE) — Pluristem Therapeutics Inc. (PSTI) (TASE:PLTR) today announced that its wholly owned subsidiary, Pluristem Ltd., has received approval for a 14.6 million New Israeli Shekel (approximately $4.2 million) grant from the Office of the Chief Scientist (OCS) within the Israeli Ministry of Economy. Once received, the grant will be used to cover R&D expenses for the period January 2014 to December 2014.
“We are pleased that the OCS appreciates the important cell therapy work Pluristem is conducting and that they have seen it fit to increase our grant this year. The OCS plays a very important role in supporting the broader technology industry in Israel,” said Zami Aberman, Chairman and CEO of Pluristem.
“Over the past year, since our last award from OCS, we have achieved numerous milestones in R&D, manufacturing, and our clinical development programs. Pluristem is well established as a global leader in the cell therapy area and we are actively working with other thought leaders to advocate on behalf of our industry, which holds great promise for the future of healthcare,” Aberman added.
About the Office of the Chief Scientist and Grant Terms
The OCS, empowered by the Law for the Encouragement of Industrial Research & Development — 1984, oversees all Government sponsored support of R&D in the Israeli hi-tech and bio-tech industries. This broad-spectrum support stimulates the development of innovative state-of-the art technologies, enhances the competitive power of the industry in the global hi-tech market, creates employment opportunities and assists in improving Israel’s balance of payments.
According to the OCS grant terms, Pluristem Ltd. is required to pay royalties in the rate of 3% – 5% on sales of products and services derived from technology developed using this and other OCS grants until 100% of the dollar-linked grants amount plus interest are repaid. In the absence of such sales, no payment is required. In addition, some of the grant is subject to either an assessment or medical opinion regarding conducting a clinical trial involving pregnant women.
