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Though Wall Street is turning cautious on biotech, privately held life sciences companies are experiencing a boon in funding for their projects. Almost $1.5 billion in new capital has been committed to these companies during the first three weeks of April, with $1.2 billion of that raised by U.S. companies and almost $1 billion raised globally by companies developing therapeutics, diagnostics, and life sciences tools and technology. Of that $1 billion, two companies, Intarcia Therapeutics (raised $200 million) and Adaptive Biotechnologies (raised $105 million) accounted for almost a third of the total capital raised, while about a third of the total capital went into series B rounds, seven of which were completed in the past week.
New Jersey-based PanOptica raised up to $45 million to fund the clinical development of its small molecule selective inhibitor of VEGF as an eye drop treatment for neovascular age-related macular degeneration. New investor Novo Ventures co-led the financing with existing investor Third Rock Ventures, which also included founding investor SV Life Sciences. PanOptica said it dosed the first patient in an early-stage trial.
Georgia-based biotech Iconic Therapeutics closed a $20 million series B funding round from MPM Capital, Lundbeckfond Ventures, and H.I.G. BioVentures. The company is planning a proof-of-concept trial to test its lead therapeutic for wet age-related macular degeneration. The compound is a novel recombinant human chimeric protein therapeutic, hc-con1, that binds tissue factor, a promoter of inflammation and angiogenesis that are key processes underlying age-related macular degeneration.
Swedish biotech Wilson Therapeutics raised $40 million in a series B financing that was co-led by new investors Abingworth and MVM life Science Partners, with participation by founding investor HealthCap. Wilson is developing a therapy to treat Wilson’s disease, a rare genetic disorder that prevents the body from regulating copper and can lead to serious liver and brain damage. It will use the funding to advance its drug into late-stage trials.
Boston-based Epirus Biopharmaceuticals raised $36 million in a series B funding and said it is reverse merging with Zalicus. The new entity will carry the Epirus name and be a publicly traded company focused on building a global biosimilar business. Epirus’ strategy is to develop a pipeline of biosimilars to take into emerging markets, and through partnerships with local manufacturers, set up production facilities and market the drugs for use in the local market. It has developed a single-use, disposable technology it calls “Scale” that enables low-cost customizable manufacturing platforms and has partnered with Orygen Biotechnologia in Brazil.
Palo Alto, California-based Nora Therapeutics landed $18 million in a series B round led by Novo A/S with participation from existing investors Burrill & Company, Prospect Venture Partners, Rho Ventures, and Vivo Capital. Nora’s lead drug is in mid-stage development to improve outcomes for women with fertility issues.
Arizona-based Provista Diagnostics completed a $6 million series B financing to expand the commercial market development for its diagnostic, prognostic, and predictive tests for cancers affecting women.
Finally, San Francisco-based digital health startup Omada Health raised $23 million led by Andreessen Horowitz with participation by Kaiser Permanente Ventures and existing investors U.S. Venture Partners and The Vertical Group. Omada designs web-based therapy programs for people with serious but treatable conditions, such as type 2 diabetes, smoking cessation, and sleep disorders, that up-to-now been treated in face-to-face group settings. Its first program, Prevent, is a 16-week course aimed at helping people reduce their risk of diabetes and is sold to employers.
April 18, 2014
http://www.burrillreport.com/article-privately_held_life_sciences_companies_raise_1_5b_so_far_in_april.html
