Obetech Signs Major Deal for Obesity-related Virus AD36
Obetech LLC, a Richmond, Virginia-based biotechnology company, has signed a world-wide license agreement for the patent rights to the obesity-related virus adenovirus 36 (AD36) with Scandinavian Clinical Nutrition (SCN) of Stockholm, Sweden. The agreement was signed between SCN and the internationally-renowned researcher Dr. Richard L. Atkinson, CEO of Obetech. Ulf Soederberg, CEO of SCN, said, “Given the research conducted by Professor Atkinson and Karolinska Institutet, we see enormous potential in the field of diagnosis and treatment of virus-induced obesity. Our vision is that everyone is tested for the virus and that diagnostic tests are standard at hospitals and health care centers world-wide.”
“The results from a number of research projects indicate that between 30 and 57 percent of obese people and as much as 18 percent of lean people could be infected by the human adenovirus AD36,” said Dr. Atkinson. Results from animal testing show that nearly all individuals infected by the virus had significantly more fat compared with a control group of lean animals, even though their food intake was in fact less.
“The virus transforms ordinary cells into fat producing cells. It is, therefore, of utmost importance that we develop reliable screening tests to identify people who are infected by the virus, and that we also combine this with efficient treatment,” said Akinson.
In conjunction with these agreements, SCN has established a subsidiary called Scandivir AB. SCN owns 71 percent of the shares in Scandivir AB, while Professor Atkinson, through his company Obetech, owns 25 percent and the remaining 4 percent are held by three smaller investors. The purpose of Scandivir AB is to develop diagnostic screening tests for both hospitals and private use. The screening tests should easily show if a person either carries AD36 or has developed antibodies. Further, the purpose is also to develop different types of treatment such as diets and preparations.
The estimated investment need for SCN to develop diagnostic tests for commercial launch is limited to no more than US $2 million. Prior to the commercial launch, SCN will look to contact corporate partners. Any additional funding needs will be met through the capitalization of Scandivir AB.
