Panacela Labs has joined Cleveland BioLabs in a venture to develop Xenomycins pursuant to a USD4.6 million contract from the Ministry of Industry and Trade of the Russian Federation. Xenomycins are compounds used as agents to fight against infections.

The contract was issued within the framework of the Pharma 2020 development initiative launched by the Russian government. Pharma 2020 extends matching grants over the course of a three-year term to companies engaged in clinical and preclinical research and development.

According to the head of Panacela Labs Dmitry Tyomkin, the company is glad to have won in the Pharma 2020 competition for funding. Still, Mr. Tyomkin attributed the company’s success to the quality of scientific work that Panacela Labs carries on. The company also has a unique perspective on applying Xenomycins in the fight against infections posing risk to human life, Mr. Tyomkin added.