Startup Treating Newborns In Serious Condition Raises $2.5M

An Israeli biopharma company that creates treatments for newborns with life-threatening conditions has been awarded a $2.5 million grant by the European Innovation Council (EIC).

ELGAN Pharma is developing an oral formula for the treatment of a digestive disorder that prevents preterm infants from absorbing nutrients from feeding and can lead to severe complications, known as intestinal malabsorption. 

Its ELGN-GI treatment uses synthetic human insulin that is created through fermentation in microorganisms to treat the disorder, improving and developing the function of the organs that food and liquids pass through, like the esophagus, stomach, and intestines.

This reduces the need for intravenous feeding, which delivers formula through different veins that bypass the digestive system to help the infant receive nutrients. Intravenous feeding has a high risk of life-threatening complications, like infection of the bloodstream.

The ELGN-GI formula would make it possible for infants to be tube-fed through their stomach or small intestine. 

The EIC is a European program that identifies, develops, and scales up innovative technologies. The grant will help ELGAN embark on a clinical study to further prove the safety and efficacy of its treatment. 

“We are proud and excited to be awarded the EIC grant, that serves as a vote of confidence in our product and is a recognition of the importance of bringing to market medications for the treatment of intestinal malabsorption in premature infants,” said Miki Olshansky, CEO of ELGAN Pharma.

“Across several clinical trials, ELGN-GI has demonstrated promising efficacy data in promoting maturation of the GI [gastrointestinal] tract in preterm infants, resulting in significant reduction in life-threatening prematurity associated complications,” she said.

“Given the clinical data to date, we are confident that ELGN-GI holds the potential to improve the care of premature infants, paving the way for better outcomes and improved wellbeing of neonates worldwide.”

Elgan Pharma was founded in 2018, and is based in Nazareth, northern Israel.