AVN Treatment by ilaya - the first medical project in the Ukrainian crypto-investment market
A Ukrainian company that has led innovation in the area of stem-cell treatments is now joining the ranks of financial innovators, using an initial coin offering to raise funds for expansion into the U.S. market.
The medical company ilaya is planning to sell its own cryptocurrency to fund clinical trials in America for its revolutionary treatment of avascular necrosis (AVN) of the hip. AVN, a condition that affects about 20,000 new patients in the U.S. each year, is the death of bone tissue after a loss of blood circulation; the precise causes remain unknown. The trials are necessary to get approval from the U.S. Food & Drug Administration.
ilaya developed its innovative methods for stem cell regeneration of bone tissue by working with soldiers wounded in Ukraine’s anti-terrorist operation in the southeast of the country. So far the company has helped more than 80 veterans, who would have faced amputation if ilaya hadn’t been successful in re-growing their bones. The expansion to the civilian market of AVN treatment places ilaya in a long tradition of technical innovations that were originally developed for the battlefield but later found more widespread application, such as radar.
“At the moment there is no ‘gold standard’ for treating AVN of the hip,” said Vitaliy Kriukov, director of the medical company ilaya International and one of the founders of the project. "The majority of AVN patients end up having hip replacement surgery, which typically costs $30,000 - $50,000 and can significantly reduce the patient’s mobility – and thus, their quality of life.”
ilaya has applied for recognition in the United States of its Ukrainian patent, and has also begun a dialogue with the FDA.
The company’s treatment method is based on taking adult stem cells from the patient’s own body, replicating them in a laboratory and then injecting them back into the patient’s body at the spot where new bone is needed. In the case of AVN, this is the head of the femur (the top of the thigh bone).
“The Ukrainian team has already done significant work and it will be an advantage in the approval process in the U.S., " Kriukov said. "Because of the clinical work that’s already been carried out in ilaya, our project has a more favorable position in the market. We’ve developed a strategy for the rapid and successful conduct of clinical trials in the US, which significantly increases our chances of success of winning a large share of the market.”
ilaya is now seeking partners for the project, who will either purchase tokens in its ICO (units that entitle their holders to a share in the profit from the project), or equity directly in the U.S. company.
“The ICO makes it easy to invest even a small amount in the project, and to exit at any time,” says Kriukov. “The opportunity to invest in AVN treatment by ilaya at the pre-ICO stage will provide the investor with additional preferential benefits. At the same time, the project is also open for classic equity investments."
Dmytro Zubov, a biologist and biotechnologist, is the head of ilaya’s scientific team. The holder of 16 patents, he runs the laboratory for stem cell production, which was established in 2011.
“Unfortunately, in Ukraine we’ve had a lot of opportunities to learn about regeneration of bone tissue that has been damaged by trauma,” says Zubov. “So we hope some good can come out of it for people in the U.S. who are suffering from AVN.”
While the precise causes remain unclear, AVN is linked with a number of factors, including traumatic injury and steroid medications, and can be exacerbated by factors like alcohol consumption.
Zubov and his team are already researching other applications of the company’s technology, and after introducing its treatment for AVN in the U.S., the company plans to expand into other geographical markets, and offer treatments for other conditions. For example, the company sees huge potential to use its stem cell technology to treat herniated spinal discs.
"We are convinced that there will be strong demand for our technologies," says Kriukov. "Using our AVN treatment for tens of thousands of patients per year can save millions of dollars in disability payments and the costs of joint replacement. This is a real opportunity to improve people’s quality of life and keep them in the workforce."
More information is available on the project’s website, AVN.ilaya.com.