Venture Funding Deals, May 2015

Derived from Strategic Transactions, Informa’s premium source for tracking life sciences deal activity, the Venture Funding Deals column provides a comprehensive monthly review of emerging life science companies that have received venture funding, including companies within the In Vitro Diagnostics, Medical Devices, and Pharmaceuticals sectors. This month’s column covers deals announced March through April 2015.

IN VITRO DIAGNOSTICS

Admera Health

Admera Health closes Series A round

Admera Health (molecular diagnostics) raised an undisclosed sum in its Series A round from lead investor Prime Value Capital Management (PVCM) and Sungent Bioventure. PVCM joins the board of directors. (Apr.)

Admera was formed in 2012 as the clinical genomics services business of DNA sequencing CRO GENEWIZ, which two years later, spun the unit off along with some of its diagnostics assets. Admera’s focus is on personalized medicine and noninvasive cancer screening. The company’s offerings include the pharmacogenomics test PGxOne, which predicts how a specific patient will react to a drug therapy based on their unique genetic makeup, and OncoGxOne, which detects all known genetic alterations in cancer genes for use in planning targeted drug treatments and chemotherapy. Rosetta Genomics Ltd. markets Admera’s products, including EGFR and KRAS clinical sequencing tools, under a deal signed last year.

Color Genomics

Color Genomics raises $15mm in Series A round

According to industry sources, molecular diagnostics start-up Color Genomics raised $15mm through its Series A round that was led by Khosla Ventures and Formation 8. Emmerson Collective also participated, along with executives from a variety of tech companies including Cisco, Twitter, Eventbrite, Yahoo, PayPal, Dropbox, and Box. (Apr.)

Color Genomics prides itself on the availability of its Color Test, a genetic sequencing test that analyzes 19 genes (including BRCA1 and BRCA2) associated with breast and ovarian cancer. The unique feature of the diagnostic is that it is sold for $249, about one tenth the price of other comparable tests currently on the market. The company also launched the ‘Every Woman Program,’ designed for women interested in undergoing genetic testing but unable to afford it. Series A funds will go toward expanding availability of the Color Test, which also comes with genetic counseling for the patient at no additional charge.

HalioDx

HalioDx brings in €7.5mm through Series A round

HalioDx (immuno-oncology diagnostics) raised €7.5mm ($8.2mm) through its Series A round provided by company founders along with MI Care (Matignon Investissement & Gestion), Sham Innovation Santé, and Sofipaca (a subsidiary of Crèdit Agricole). (Mar.)

HalioDx was formed as the result of a management buy-out from Qiagen NV’s Qiagen Marseille SA division (formerly Ipsogen before its acquisition by Qiagen). HalioDx is staffed by 75 former Qiagen Marseille employees, including president and CEO Vincent Fert, who also headed Ipsogen. The company holds all Qiagen Marseille assets and liabilities, excluding the IP portfolio, research tax credit, and cash assets. Concurrent with the buy-out and Series A, HalioDx licensed exclusive global rights to INSERM’s Immunoscore immunohistochemistry test for colon cancer; it hopes to obtain the CE mark within the next year and a half. HalioDx and Qiagen also have a five-year agreement surrounding manufacturing and certain diagnostic products for leukemia (under the Ipsogen name).

Natera Inc.

Natera brings in $55.5mm through Series F round

In what appears to be its Series F round, genetic testing company Natera Inc. raised $55.5mm from Sofinnova Ventures (lead), Capital Research and Management, Franklin Templeton Investments, Jennison Associates, RA Capital Management, HealthCor Partners, and OrbiMed Advisors. Money will go toward domestic and global marketing efforts, and will also fund continued development of the company's marketed noninvasive prenatal genetic screening test Panorama, as well as work on noninvasive cell-free DNA tests for cancer. (Apr.)

MEDICAL DEVICES

Contego Medical LLC

Contego Medical brings in $5.6mm via Series B

Contego Medical LLC raised $5.6mm in its Series B financing led by Hatteras Venture Partners, which adds a board member and was joined by Mountain Group Partners, Lookout Capital, and Medical Mutual. (Apr.)

Contego created the Integrated Embolic Protection filter platform for angioplasty balloon and stent delivery catheters. The technology is integrated into the company’s three devices--the Paladin carotid post-dilation balloon, Corguard coronary stent system, and Vanguard renal artery stent system. The products are designed to help endovascular surgeons reduce the risk of stroke and other complications. Some of the Series B funds will help the company develop a next-generation Integrated Embolic Protection platform.

EBR Systems Inc.

EBR Systems brings in $20mm so far in its Series E round

EBR Systems Inc. (developing the first wireless cardiac pacing system for heart failure) raised $20mm in its Series E financing led by Emergent Medical Partners. Other participants included current shareholders Split Rock Partners, SV Life Sciences, Delphi Ventures, St. Paul Venture Capital, a cardiovascular corporate strategic investor, and individuals. The company says it plans to bring in more Series E money in May. Funds will help support clinical trials and regulatory filings for its first product. (Apr.)

InterVene Inc.

InterVene gets $5.9mm in Series A round

Medical device start-up InterVene Inc. raised $5.9mm through its Series A financing round led by Boston Scientific, which was joined by North Texas Angels Network, Green Park and Golf Ventures, LaunchCapital, and a syndicate of angel investors. (Mar.)

The first round funding will help the company conduct a two-stage clinical trial designed to demonstrate the functionality and safety of a catheter-based therapy to correct the underlying cause of chronic venous insufficiency (CVI). The minimally invasive procedure, the first of its kind, creates new deep vein valves out of a patient’s own vein wall tissue. The technique is based on the proven Maleti neovalve open-surgical procedure. Current deep vein CVI treatments involve palliative therapies such as compression stockings and wound care.

Neuronetics Inc.

Neuronetics raises $34.3mm in Series F financing

Deep-brain stimulation company Neuronetics Inc. completed a $34.3mm Series F financing. Existing shareholders joined new backer GE Ventures. Neuronetics will use the funding to broaden patient access to its NeuroStar TMS Therapy (a noninvasive transcranial magnetic stimulator approved for major depressive disorder in adults), expand commercial resources, and pay for a study that would support the use of NeuroStar in adolescents. (Apr.)

Ortho Kinematics Inc.

Ortho Kinematics brings in $9.6mm via Series C

Ortho Kinematics Inc. (spine imaging) raised $9.6mm in its Series C round to partner Medtronic, returning shareholder TEXO Ventures, and first-time backer MB Venture Partners, which adds a board member. According to the Form D, a total of 38 investors participated. The money will help commercialize the company’s Vertebral Motion Analysis device for assessing spinal motion and instability. (Apr.)

ReShape Medical Inc.

ReShape gets $12mm in senior credit facility

Oxford Finance and Silicon Valley Bank provided ReShape Medical Inc. (developed a dual-intragastric balloon for weight loss) with a $12mm senior secured term loan to support marketing and product development. (Apr.)

Spirox Inc.

Spirox brings in $18.5mm via Series B

Spirox Inc. closed its $18.5mm Series B round led by Venrock and Aisling Capital, which each add a board member. Returning shareholders Aperture Venture Partners, Correlation Ventures, and Western Technology Investment also participated. (Apr.)

The firm is developing a minimally invasive system to treat nasal obstruction. Current treatments involve surgery but Spirox’s solution is a non-surgical implant to restore the nasal valve. Funds will help finish product development, obtain US marketing clearance, and begin commercial activities.

Tal Medical Inc.

Tal Medical brings in $14mm through Series B round

Tal Medical Inc. (developing a noninvasive treatment for psychiatric disorders) raised $14mm through its Series B round. Founding investor PureTech Ventures participated along with a new institutional shareholder and individual backers. (Apr.)

The company was formed by PureTech in 2010 based on research out of Harvard University-affiliated [McLean Hospital] that demonstrated improvement in bipolar depression patients following MRI scans; the brains of the patients were altered by the short-term exposure to low-field magnetic stimulation (LFMS) from the MRI. Tal Medical licensed technology surrounding the McLean research and began developing its LFMS device, which applies pulsed magnetic fields to the brain at a field strength that is below the threshold for neuronal firing, making it a safer alternative to other treatment methods such as electroconvulsive therapy and repetitive transcranial magnetic stimulation. Research has also shown that Tal’s device (which is in Phase II studies) produces a rapid onset of action in comparison with pharmaceutical treatments, which can take one-to-three months to produce results. The company will use the Series B money to continue developing the therapy for both unipolar and bipolar depression.

PHARMACEUTICALS

Ark Biosciences

Ark Biosciences closes Series A round

Ark Biosciences raised an undisclosed amount in Series A funding. New investors Qiming Venture Partners and Morningside Venture led the round and were joined by TF Capital. (Apr.)

The money will support ongoing development of its Phase I AK0529 for respiratory syncytial virus and earlier stage programs in hepatitis B virus. Ark licensed AK0529 from Roche in mid-2014. The compound is a small-molecule inhibitor of RSV replication that targets the virus’ key fusion protein, therefore stopping the virus from entering host cells and inhibiting F protein-induced cell-cell fusion. If successfully developed, AK0529 would be a first-line antiviral therapy for RSV, a disease for which there are no effective antivirals.

aTyr Pharma Inc.

aTyr Pharma raises $76mm through Series E round

aTyr Pharma Inc. (developing physiocrine-based therapies for rare diseases) raised $76mm through its Series E round from a total of 42 investors, including lead backers Sofinnova Ventures and an unnamed large institutional investor, additional new buyers Federated Investors, funds advised by T. Rowe Price, Deerfield, Rock Springs Capital, EcoR1 Capital, Sphera Global Healthcare, and other new and existing backers. Some of the proceeds will fund an ongoing Phase Ib/II trial of Resolaris for faciocapulohumeral muscular dystrophy, and could also support expansion into additional disease areas. (Mar.)

Dimension Therapeutics Inc.

New Leaf leads $65mm Series B round for Dimension

Dimension Therapeutics Inc. (adeno-associated virus (AAV) gene therapies for rare diseases, initially focused on hemophilia in partnership with Bayer) raised $65mm in a Series B financing from 12 investors. New Leaf Venture Partners led and contributes a board member, and was joined by fellow first-time backers Jennison Associates, Partner Fund Management, RA Capital Management, Rock Springs Capital, Tourbillon Global Ventures, and an undisclosed investor. Existing shareholders Fidelity Biosciences and OrbiMed also participated. (Apr.)

Domain Therapeutics SA

Kaldi Pharma

Domain creates special-purpose financing vehicle Kaldi Pharma

Domain Therapeutics SA created the special-purpose financing vehicle (SPFV) Kaldi Pharma, which will be in charge of developing Domain's A2a/A1 and A2a antagonists in neurology and oncology. (Mar.)

Kaldi concurrently licensed CleveXel Pharma worldwide rights to the preclinical A2a/A1 candidate CVXL0069 for Parkinson's disease. Kaldi also plans to partner the A2a program, focused on oncology, with a separate company. (Kaldi believes the A2a antagonist might be combined with an immune checkpoint inhibitor (anti-PD1) to improve effects.) SPFVs such as Kaldi have been sparse for a while; typically the off-balance sheet entity is set up with a certain amount of funding to do work on a specific project. Over time, the SPFV may eventually may get bought back by the originating company. In the past, Symphony Capital has set up SPFVs with Lexicon and OxiGene.

Edge Therapeutics Inc.

Venrock leads Edge Therapeutics' $56mm Series C-2 financing

Venrock led a $56mm Series C-2 financing for acute care company Edge Therapeutics Inc., which last month closed a $16.5mm Series C-1 financing. The placement agents were Credit Suisse and Leerink Partners. (Apr.)

A total of 19 investors participated in the Series C-2, including Sofinnova Ventures, Janus Capital Management, Franklin Advisers' funds, New Leaf Venture Partners, and BioMed Ventures. Partners from Venrock and Sofinnova joined Edge's board. The company will use the combined $72.5mm in C-1 and C-2 financings to complete the Phase I/II NEWTON study and to prepare for Phase III of EG1962 (NimoVent; nimodipine microparticles) in subarachnoid hemorrhage resulting from a ruptured brain aneurysm.

Embera NeuroTherapeutics Inc.

Embera raises $2mm in Series A-2 financing

Embera NeuroTherapeutics Inc. (drug candidates for various addictions including cocaine, methamphetamine, and smoking) raised $2mm in Series A-2 financing from returning backers including Seven Holdings, angel groups, individuals, and HRA Pharma SA, whose CEO Erin Ganier, PhD, joined Embera's board as a non-voting observer. The company will use the funding to finish EMB001's (oxazepam and metyrapone) Phase I single- and multi-dose trial in smoking cessation. (Apr.)

Gelesis Inc.

Gelesis raised $18mm in late-stage private placement

Gelesis Inc. (metabolic conditions) raised $18mm through the sale of convertible preferred shares. The company also converted $4mm in outstanding convertible promissory notes. Funds will support ongoing clinical trials of the Gelesis100 smart pill for obesity and advance its preclinical Gelesis 200 for glycemic control and weight loss in pre-diabetic and diabetic patients. (Mar.)

Innocrin Pharmaceuticals Inc.

Innocrin closes $28mm Series D round

Innocrin Pharmaceuticals Inc. (spun off from Viamet in 2014; developing small-molecule CYP17 lyase inhibitors for cancer) raised $28mm through its Series D round. Eschelman Ventures led (and takes a board seat) and was joined by existing investors Novartis Venture Fund, Lilly Ventures, Hatteras Venture Partners, Intersouth Partners, and A&B Equity Holdings. Money will be put towards development of VT464, in Phase II for castration-resistant prostate cancer and Phase I for anti-estrogen resistant and triple-negative breast cancers. (Apr.)

Jounce Therapeutics Inc.

Jounce Therapeutics raises $56mm through Series B round

Jounce Therapeutics Inc. (cancer immunotherapies) raised $56mm in an oversubscribed Series B round by new investors Wellington Management, Redmile Group, Nextech Invest, Pharmstandard International SA (the venture investment division of Pharmstandard OJSC), Cormorant Asset Management, Omega Funds, Casdin Capital, Forsite Capital Management, and an undisclosed blue chip public investment fund. (Apr.)

Jounce will use the money to advance its lead project--an Inducible T-cell Co-Stimulator (ICOS) agonist monoclonal antibody--into clinical trials, and will also fund a second compound through IND-enabling studies. The company will also look into new treatments for tumors that are less likely to respond to T-cell checkpoint monotherapy.

Nabriva Therapeutics AG

Nabriva gets initial $50mm in planned $120mm Series B

Antibiotics developer Nabriva Therapeutics AG raised $50mm through the first tranche of its Series B financing led by Vivo Capital and OrbiMed, which each add a board member and were joined by EcoR1 Capital, Tavistock Life Sciences, HBM, Nomura Phase4, Wellcome Trust, Global Life Science Ventures, and Novartis Venture Fund. The company expects the round to bring in up to $120mm. Funds will help move its lead compound lefamulin into Phase III for community-acquired bacterial pneumonia, and continue pipeline development. (Apr.)

Novan Therapeutics Inc.

Mezzanine round grabs $50mm for Novan Therapeutics

Novan Therapeutics Inc. (Nitricil delivery technology for nitric oxide therapeutics, mainly in dermatology but also for viral diseases) raised $50mm in an oversubscribed mezzanine round led by Malin Corp. PLC and including previous investors located in Research Triangle Park, North Carolina. (Mar.)

Two members from Malin joined Novan's board. Novan received $10.3mm in the first tranche, which closed in August 2014. The company had originally planned to raise a total of $25mm. The money will help move SB204 into Phase III trials for acne vulvaris.

SciFluor Life Sciences LLC

Series A round brings SciFluor $27.8mm

SciFluor Life Sciences LLC, a 2011 start-up that adds fluorine to molecules to improve their pharmacological properties, raised $27.8mm in what is thought to be its Series A financing. (Apr.)

Backers included Invesco Asset Management (which bought 1.2mm preferred shares for a total of $11.7mm), Woodford Investment (1.2mm shares for $11.3mm), and seed investor (and SciFluor's parent) Allied Minds ($4.8mm, increasing its stake to 69.94% which is worth $91.4mm). As a result of the financing, SciFluor's valuation totals $130.7mm. The company will use the money to develop its lead candidates for retinal diseases (SF0166, an integrin antagonist eye drop) and partial-onset epilepsy (SF0034, a neuronal potassium channel activator), and to expand its pipeline.

Thrasos Therapeutics Inc.

Thrasos raises $21mm in Series D round

Thrasos Therapeutics Inc. raised $21mm through its Series D round. New investor BDC Capital (takes a board seat) and returning backer SR One led, and were joined by all existing investors including Advanced Technology Ventures, Fonds de solidarite FTQ, Lumira Capital, MP Healthcare Venture Management, Pappas Ventures, and SW Co. Proceeds will fund development of THR184, a bone morphogenetic protein stimulator in Phase II for the prevention of acute kidney injury in patients undergoing cardiac surgery. The company will also use the money to expand development activities into chronic kidney disease. (Mar.)

Tricida Inc.

Tricida closes $30.3mm Series B round

Biotech start-up Tricida Inc. raised $30.3mm in its Series B round. Existing investor OrbiMed led and was joined by Sibling Capital Ventures, Limulus Venture Partners, and one other unnamed buyer. (Mar.)

Tricida is developing treatments for complications of renal disease. Its lead candidate TRC101 (preclinical) is a non-absorbed drug that is designed to prevent degradation and systemic uptake, and instead, acts in the gastrointestinal tract and clears the body through the digestive system. Tricida closed a $10mm Series A round in 2014 (from the same investors who participated in the B round), and prior to that, received seed funding from Sibling Capital.

True North Therapeutics Inc.

True North Therapeutics closes $35mm Series B

True North Therapeutics Inc., a biotech targeting inhibitors of the complement pathway (a component of the immune system), raised $35mm in a Series B round led by OrbiMed. Existing investors also participating included Kleiner Perkins Caufield & Byers, MPM Capital, SR One, and Baxter Ventures. (Apr.)

The proceeds will enable the company to advance its lead complement inhibitor TNT009 and a second preclinical candidate into development. Expected to start Phase Ia during Q2 2015, TNT009 has possible indications in rare hematologic and skin diseases and prevention of rejection in kidney transplant.

Voyager Therapeutics Inc.

Voyager Therapeutics closes $60mm Series B round

First-time backers Brookside Capital and Partner Fund Management co-led a $60mm Series B round for Voyager Therapeutics Inc. (gene therapies for rare CNS diseases). Other new investors also participated including Wellington Management, Casdin Capital, and two blue chip investment funds. Voyager will put the money toward its pipeline, most of which is partnered with Genzyme under a February 2015 deal. (Apr.)