Dermatology firm Valocor spins out of QLT with seed funding
This article was originally published in Scrip
A new company has been spun out of QLT to focus on the development of dermatological therapies. Vancouver, Canada-based Valocor raised an undisclosed amount through a seed financing and is now raising a series A round of about $8 million which it expects to complete by the end of the year. It has budgeted for spending of $4.8 million in 2011.
Valocor has licensed from QLT a clinical-stage photodynamic therapy (PDT) candidate to treat moderate to severe acne and a portfolio of earlier-stage programmes for acne, atopic dermatitis and vitiligo. President and CEO Daniel Wattier said that the firm was operating a "semi-virtual" model with five internal employees and relationships with several specialised consultants and contractors, "until we are in a position to grow".
The firm is evaluating other potential dermatology therapeutics for in-licensing, and is talking to a number of dermatology pharma companies about the possibility of collaboration on its existing programmes, said Mr Wattier.
The CEO believes that dermatology drug R&D has suffered over the past 20 years from minimal investment and a lack of scientific innovation. He told Scrip: "During this same period, technological advances have produced new research techniques that have greatly expanded our ability to study disease processes and develop effective therapeutic strategies. Much of this innovative research in recent years has been applied to the fields of oncology, autoimmunity and ocular diseases, with the majority of capital and resources directed at those markets. This has resulted in what we believe to be an imbalance in which there are virtually no innovative products in the pipeline for major dermatology indications. Our mission is to carry forward what got started at QLT, which is to apply sound research principles to develop breakthrough therapies for dermatological diseases."
Valocor's lead programme is lemuteporfin, for which the firm expects to begin a Phase I/II proof of concept trial in 64 patients early next year. The product was developed through mechanistic studies to produce anti-sebaceous gland effects comparable to Roche's Accutane (isotretinoin), but without the side-effects of systemic toxicity and fetal defects that are linked to the latter. Roche stopped selling Accutane in the US last year, citing generic competition but admitting that it had also incurred high costs from personal injury lawsuits; generic isotretinoin is still available there (scripnews.com, 30 June 2009).
Sales of Accutane peaked at about $800 million in 1999 but dipped away because of safety issues. "We believe that given the potential for significant anti-sebaceous gland effects without the risk of the systemic side-effects, the addressable market for lemuteporfin could be larger," said Mr Wattier, adding that Valocor would seek a partnership with a significant dermatology player once it reaches Phase III studies. He noted that about 2 million eligible patients seek treatment for moderate to severe acne in the US each year.
The preclinical portfolio comprises VAL-001, a novel topical sebum inhibitor targeting acne and sebaceous gland hyperactivity for which formulation studies should commence this summer; VAL-002, a small-molecule kinase inhibitor for the topical treatment of chronic inflammatory skin disease for which Valocor is seeking partners; and VAL-003, a novel kinase inhibitor with dual melanin-stimulating and immune-modulating activities to restore normal skin pigmentation levels in vitiligo, for which partners are also being sought.
Valocor's seed financing round was led by the venture capital fund Working Opportunity Fund – which is managed by GrowthWorks Capital, a Canadian subsidiary of Matrix Asset Management – and included angel investors.