NovaQuest Capital Management LLC, an investor in life sciences and healthcare, said Monday it has invested $20 million in Israeli biopharmaceutical firm Mileutis Ltd. to develop a product that aims to cut the use of antibiotics in animals.
NovaQuest’s investment will further the development of Mileutis’s biologically sourced and residue-free therapies for animal health, and help bring them to market, the companies said in a statement.
NovaQuest’s investment is its first ever in the animal health care field and in an Israeli company, the statement said.
Mileutis’s product, which is in “advanced stages of development,” addresses a major concern in the dairy industry: bovine mastitis. The disease is the most frequent in dairy herds worldwide, affecting the mammary gland and udder tissue in dairy cows.
The disease can impair milk-secreting tissues in cattle, causing lower milk production, lower quality of milk, and death. According to the University of Glasgow, the global losses to the dairy industry caused by bovine mastitis are around $19.7 billion to $30 billion annually.
Currently, antibiotics are the main therapy used in treating mastitis and are routinely