Recent Financings Of Private Companies, June 2013

Derived from Strategic Transactions, Elsevier Business Intelligence’s premium source for tracking life sciences deal activity, the Recent Financings Of Private Companies column provides a comprehensive monthly review of emerging life science companies that have received venture funding, including companies in the In Vitro Diagnostics, Medical Devices, and Pharmaceuticals sectors.

IN VITRO DIAGNOSTICS

BioFire Diagnostics Inc.

Athyrium Opportunities Fund ups investment in BioFire Diagnostics from $25mm to $45mm

BioFire Diagnostics Inc. (formerly Idaho Technology; DNA analysis and genotyping) has raised a total of $45mm in financing from Athyrium Opportunities Fund. In September 2012, BioFire said it was getting $25mm from Athyrium. (May)

The funds will support commercialization of BioFire’s FilmArray diagnostic platform and help further develop additional applications for the product. The company has initially created an FDA-approved and CE-Marked respiratory panel for use on FilmArray. The product can simultaneously test 17 viral targets and three bacterial targets in about an hour. BioFire says it plans to develop other FilmArray panels for blood-culture identification, diarrhea, pneumonia, and meningitis. It recently submitted an application to the FDA for a sepsis panel.

Natera Inc.

Natera brings in $54.6mm through its Series E venture round

Natera Inc. (prenatal diagnostics) has raised $54.6mm through its Series E venture round. New investors OrbiMed Advisors and Harmony Partners led and were joined by other undisclosed first-time backers as well as all current shareholders, including Claremont Creek Ventures, Lightspeed Venture Partners, Founders Fund, and Sequoia Capital. The company will use the funds to continue global commercialization of its Panorama noninvasive prenatal test for chromosomal abnormalities such as trisomy 21, 18, and 13 and monosomy X. Some of the money will also be used to expand its lab team and sales force. (May)

STAT-Diagnostica & Innovation SL

STAT-Diagnostica raises €17mm in Series B round

Kurma Life Sciences Partners has led a €17mm ($22.1mm) Series B financing for Spanish point-of-care testing company STAT-Diagnostica & Innovation SL. Other first-time investors Idinvest, Boehringer Ingelheim Venture Fund, and Caixa Capital Risc (the venture capital arm of the Spanish savings bank la Caixa) were joined by existing backers Ysios Capital Partners and Axis Participaciones Empresariales. Post-closing, Ysios becomes the start-up’s largest shareholder. (May)

STAT-Diagnostica will use the funds to complete development of its near-patient testing system DiagCORE, which the three-year-old firm plans to launch in Europe in 2015. Within a single system, DiagCORE encompasses molecular testing and immunoassays involving multiple samples or analytes, providing rapid results in less than 30 minutes. The portable diagnostic uses consumable test cartridges, including the STAT-Molecular, which through quantitative PCR automates sample homogenation, cell disruption, and nucleic acid purification in assays covering infectious diseases, cancer, prenatal testing, and other areas; and the STAT-Immuno to perform plasma separation and identify biomarkers such as procalcitonin (for sepsis), troponin (acute myocardial infarction), and neutrophil gelatinase-associated lipocalin (acute kidney injury). STAT-Diagnostica believes this platform will deliver actionable clinical information to health care providers to improve patient management. Initially, the company plans to market its product for detecting infectious diseases, antibiotic resistance, and biomarkers in critically ill patients. Its primary customers will be hospitals, particularly emergency departments, ICUs, and stat labs. STAT-Diagnostica raised €2mm through a 2011 Series A financing from Ysios and Axis.

Trice Orthopedics Inc.

Series A brings $3mm to Trice Orthopedics

Trice Medical Inc. (needle-based diagnostic and therapeutic technologies) raised $3mm in its Series A financing led by BioStar Ventures and the Millennium Fund, which were joined by company founders and angel investors. Trice plans to close a second tranche during the third quarter of 2013. (May)

Funds from the round will help the start-up complete Phase I of a diagnostic and bring it through regulatory approval, manufacturing, and early US commercialization. Trice is working on Micro Vision solutions, which provide accurate and real-time office-based assessments to improve the outcomes of arthroscopic procedures. The firm hopes its technology will become a standard-of-care to reduce health care costs and improve patient outcomes. The company concurrently appointed Richard H. Washburn president.

MEDICAL DEVICES

Cervel Neurotech Inc.

Cervel Neurotech raises $14.1mm in late-stage financing

In a late-stage financing, Cervel Neurotech Inc. (transcranial magnetic stimulation--TMS--for CNS diseases) has raised $14.1mm from returning shareholders DE Shaw Ventures and Aberdare Ventures, which were joined by two new unnamed investors. The company also concurrently signed a credit facility with East West Bank. (Apr.)

The new funding will support larger-scale clinical studies of Cervel’s Steerable TMS system, which incorporates technology licensed from Stanford University. Steerable TMS involves the external application of repetitive, small electrical currents--generated by multiple overlapping magnetic fields--to activate cortical and noncortical structures of the brain to restore metabolism in patients with depression or pain who haven’t responded to drug treatment. Cervel, which was founded as NeoStim in 2008, says its device, consisting of magnetic coils that are placed on the scalp, is unique in that it can reach to deeper parts of the brain, while avoiding stimulation of the areas that are not affected by the disorder. Currently Neuronetics sells the TNS product NeuroStar for depression; both Cervel and Israeli firm Brainsway (which failed an attempt at a US IPO in 2011) are developing new TNS devices to compete with NeuroStar in this market. Including the present financing, Cervel has raised a total of $23.1mm to date (it grossed $1.5mm through its Series A, and $7.5mm in a Series B round).

Lanx Inc.

Series C brings in $15mm for Lanx

Spinal device maker Lanx Inc. raised $15mm in its Series C financing led by first-time backer Credit Suisse Asset Management, which was joined by other new investor Hercules Technology Growth Capital and returning shareholders Chicago Growth Partners, Goldman Sachs Private Equity Opportunities Fund, Noro-Moseley Partners, and Oakwood Medical Investors. (May)

Lanx will use the funds for R&D of minimally invasive and core spinal fusion devices, as well as commercialization activities. The company’s leading minimally invasive surgical products are the Timberline lateral fusion system and Aspen fusion system for posterior fixation. It also has biologics, screws, cervical plates, and interbody spacers. Founded in 2003, Lanx sells its devices in the US, Mexico, and Europe using its own sales team as well as distribution partners.

Nanostim Inc.

Nanostim brings in $9.5mm through its Series D venture round

Nanostim Inc. (developing a pacemaker) has raised $9.5mm through what is believed to be its Series D venture round. There were six undisclosed investors. Nanostim is an InterWest and Life Sciences Angels portfolio company. (Apr.)

Proteus Digital Health Inc.

Proteus Digital Health brings in $62.5mm through its Series F venture round

Proteus Digital Health Inc. (formerly Proteus Biomedical) has raised $62.5mm through its Series F venture round. New backer Oracle Corp. joins Otsuka Pharmaceutical Co. Ltd., Novartis AG, Sino Portfolio, and additional unnamed investors. The company has developed a digital feedback system that includes wearable and ingestible sensors to ensure that patients comply with the administration of medicine, to measure physiologic response, and overall health management. (May)

SpineVision SA

SpineVision SA gets $10mm in late-stage round

SpineVision SA (surgical spine treatments) raised $10mm in an undisclosed late-stage financing led by Omega Funds, which was joined by other first-time backers Alto Invest, Midi-Capital, and a private investor. (May)

The fourteen-year-old firm will use the funding for R&D and US and European marketing activities. Its product portfolio includes the Flex+2 dynamic stabilization rod, Lumis minimally invasive system, Plus and X-Plus thoraco lumbar solutions, SpaceVison anterior cervical interbody fusion cage, and C3 anterior cervical plate system. With its Flex+2 and Lumis, SpineVision is currently the only manufacturer to provide dynamic stabilization that can be used in a percutaneous method. Two months ago, Royal DSM NV licensed SpineVision rights to incorporate the Bionate II PCU polymer into its CE-Marked Flex+2, which is being prepped for launch in the EU. SpineVision last raised money ($5mm) in July 2011. Investment Banks/Advisors: Bryan Garnier & Co.

Thermedical Inc.

Series A2 leads to $5.5mm for Thermedical

Thermedical Inc., a developer of tissue ablation therapies, raised $5.5mm in its Series A2 financing co-led by its chairman of the board Samuel Maslak and device industry veteran Karl Johannsmeier, who were joined by angel investors. Some of the funds will support R&D in the areas of solid tumor ablation and ventricular tachycardia. Additional money will be used to hire additional staff and begin first-in-man studies later this year. The company has raised $7mm since its inception. (May)

PHARMACEUTICALS

Acumen Pharmaceuticals Inc.

Acumen Pharma completes first tranche in $20mm Series A round

BVF Partners has led the first tranche of a $20mm Series A financing for Acumen Pharmaceuticals Inc., which is focused on the treatment and diagnosis of Alzheimer’s disease. NeuroVentures Fund, Praxis Technologies, Glynn Ventures, and private backers also joined. (Apr.)

Acumen was established in 1996 around IP discovered at Northwestern University and the University of Southern California. The technology centers on smaller soluble oligomers of the amyloid-beta peptide, or what Acumen terms ADDLs (amyloid-beta-derived diffusible ligands), which are groupings of amyloid-beta 1-42 peptides made up of multiple monomers. Several scientists hypothesize that these toxic oligomers, rather than larger insoluble aggregates of amyloid-beta, are the primary cause of degeneration to neurons in AD. ADDLs inhibit synaptic function and bind to neuronal receptors, leading to aberrant signaling and cognitive dysfunction. Acumen’s platform, known as ADDL-Select, has produced disease-modifying antibodies, led by preclinical-stage ACU193. By targeting and blocking ADDLs, ACU193 may stop AD at its roots, before the patient’s memory is affected or amyloid plaques are formed. Acumen, which hopes to establish proof-of-concept in a Phase I/IIa trial by 2016, says ACU193 could be dosed either alone or in combination with other AD products. Merck previously had a license to ACU193 plus a companion diagnostics biomarker and some other IP, but the Big Pharma terminated the deal in 2011 following a review of its internal strategic priorities. Under a 2010 deal, Merz has exclusive global rights to ADDL-Select, plus a small molecule AD-modifying candidate that interferes with the assembly of ADDLs. Acumen is also working on ADDL-Select vaccines and receptor antagonists. On the diagnostics side, the biotech is pursuing an ultra-high sensitivity assay--which can be a companion test for ACU193--that monitors ADDLs in living human cerebrospinal fluid. Between 2008 and 2010, Acumen underwent a restructuring that resulted in the retiring of all of its debt and a switch to a virtual R&D model. While the current Series A is Acumen’s first financing since completing its restructuring, the company did raise $1.2mm in an initial round in March 2005.

AltheRx Pharmaceuticals Inc.

Becker Ventures leads $15mm Series A round for AltheRx

Two-year-old AltheRx Pharmaceuticals Inc. has raised $15mm in its Series A financing led by Becker Ventures. The VC firm’s Jim Bennethum and Charles E. Becker join AltheRx as CEO and chairman of the board, respectively. (May)

The Series A money will support the advancement of the biotech’s lead compound solabegron into Phase III trials. AltheRx acquired solabegron from GlaxoSmithKline PLC in March 2011. The candidate is designed to treat overactive bladder and irritable bowel syndrome by selectively targeting beta 3 adrenoreceptors, helping to relax bladder smooth muscles. (GSK had been studying solabegron in Phase II for diabetes, but stopped development because of failed results.) AltheRx’s strategy is to in-license or acquire compounds, progress them through the clinic, and then partner them for marketing.

Anterios Inc.

Anterios brings in $8.5mm through late venture round

Anterios Inc. (aesthetics and dermatology therapeutics) has raised $8.5mm through a late-stage venture round. Investors included Ascent Biomedical Ventures, DRW Trading Group, Praesideo Private Equity Partners, Quantum Technology Partners, Scientific Health Development, and The Spring Bay Companies. (Apr.)

Formed in 2006 as Encapsion, Anterios will use the money to continue working on Phase IIb studies of ANT1207, a topical botulinum toxin Type A therapeutic in development for crow’s feet wrinkles, hyperhidrosis, and acne.

Auris Medical AG

Auris Medical advances tinnitus drug therapy development with funds from CHF47.1mm Series C round

Auris Medical Holding AG (developing drug therapies for inner ear disorders) raised CHF47.1mm ($50.3mm) through its Series C round. Sofinnova Ventures and Sofinnova Partners participated, and both gain representation on Auris’s board. (Apr.)

Auris was formed in 2003, and including the current round, has raised CHF75mm in venture funding. The company will put the Series C proceeds towards its two Phase III-ready compounds--AM101 has exhibited the ability to reduce loudness in cases of tinnitus originating in the cochlea, and AM111 helps to improve hearing and speech discrimination in patients with acute sensorineural hearing loss. While tinnitus and hearing loss are commonly treated with medical devices such as hearing aids, there are currently no approved drugs for the conditions.

Callidus Biopharma Inc.

Series A brings in $4.6mm for Callidus Biopharma

Rare disease-focused Callidus Biopharma Inc. has raised $4.6mm in its Series A financing round led by two strategic undisclosed investors. (May)

Callidus plans to use some of the money for preclinical studies of its enzyme replacement therapies for lysosomal storage diseases (LSDs). Lead candidates are being developed for Pompe and Gaucher diseases as well as other insulin-like growth factor (IGF-2)-related LSDs for which there are no FDA-approved treatments. Clinical trials are expected to begin in Pompe disease during 2014. Additional funds from the round will support commercialization of its protein expression technology designed to significantly increase (by ten-fold) the yields of secreted protein production processes used in manufacturing biologics. Investment Banks/Advisors: Walter Greenblatt & Assoc.

Cardeas Pharma Corp.

Cardeas Pharma closes $34mm Series B round

Three-year-old Cardeas Pharma Corp. (developing therapies for multi-drug-resistant bacterial infections) brought in $34mm through its Series B round led by first-time backer HIG BioVentures, which adds a board member. Other new investor Delphi Ventures and returning shareholders Novo AS, Avalon Ventures, Devon Park Bioventures, and WRF Capital also participated. (May)

Cardeas will use the funds to begin Phase II trials later this year of its lead candidate amikacin/fosfomycin inhalation solution for ventilator-associated pneumonia. The compound, which is delivered via Pari Pharma GMBH’s eFlow inline nebulizer system, completed a successful Phase Ib study showing safety and tolerability. Health care-associated pneumonia is currently treated with intravenous antibiotics that target gram-negative or gram-positive bacteria. Cardeas’ aerosol formulation would offer a more convenient and less painful alternative. The company’s June 2012 Series A generated $8.5mm.

Cardio3 BioSciences SA

Cardio3 BioSciences brings in €7mm through its Series C venture round

Heart therapy developer Celyad SA grossed €7mm ($9.2mm) through what is believed to be its Series C venture round in which returning shareholders participated. The company concurrently raised €12mm through the conversion of existing convertible loans. The new money will be used to continue Phase III trials of C-Cure, which is designed to reprogram bone marrow cells into cardiopoietic cells that then grow new heart tissue to replace what has been damaged by heart failure. (May)

Celator Pharmaceuticals Inc.

Celator Pharmaceuticals raises $38.5mm in late-stage round

Celator Pharmaceuticals Inc. (developing combination chemotherapeutics) raised $38.4mm through a two-tranche late-stage private financing round (possibly a Series E). The first closing, which occurred in August 2012, consisted of the sale of 1.2mm common shares at $5.63 apiece, netting $5.9mm. In the second tranche, which closed this month and was led by new board member Valence Life Sciences, Celator sold 10.4mm common shares at $3.12 for gross proceeds of $32.5mm. Investors in the closing also received warrants to buy 0.28 shares of common stock for each common share purchased. Roth Capital and National Securities were the placement agents. Celator, a private company that publicly reports to the SEC, will use the proceeds for an upcoming Phase III trial of CPX351 (cytarabine/daunorubicin) for secondary acute myeloid leukemia in newly diagnosed patients aged 60-75. (Apr.)

Investment Banks/Advisors: National Securities Corp.; Roth Capital Partners

ContraFect Corp.

ContraFect gets $8.6mm from Chinese business group

In what appears to be its Series C financing, ContraFect Corp. (developing monoclonal antibodies and lysins to treat infectious diseases) has received an $8.6mm investment from China’s Zongyi Group, which adds a board member. The company hopes to close the round at $9.5mm. (Apr.)

eFFECTOR Therapeutics Inc.

Translation regulator-focused eFFECTOR Therapeutics raises $45mm through Series A round

Newly formed eFFECTOR Therapeutics Inc. has raised $45mm in Series A funding from US Venture Partners, Abingworth, Novartis Venture Funds, SR One, Astellas Venture Management, Osage University Partners, and Mission Bay Capital. US Venture, Abingworth, Novartis Venture Funds, and SR One will all take seats on the board. (May)

EFFECTOR is developing small-molecule therapeutics that can selectively regulate translation, or protein synthesis, as it relates to cancer growth and metastases using translational control technology that it exclusively licensed from the University of California, San Francisco. The company will initially take aim at cancer, by focusing on disrupting certain malfunctioning effector mechanisms that are required by multiple oncogenes. The hope is to regulate cancer cells’ production of protein, putting a stop to the over-production that often results in a spread of the disease. A specific project has not yet been disclosed, but eFFECTOR realizes the technology’s potential for both solid and liquid tumors, and also hopes to expand applications to later include immunology and other therapy areas. Company president and CEO Steve Worland was previously CEO of Agouron Pharmaceuticals (before it was bought by Pfizer) and then Anadys Pharmaceuticals, which Roche bought in 2011. He is joined at eFFECTOR by fellow Agouron alumni Siegfried Reich, PhD (SVP, drug discovery) and Kevin Eastwood (SVP, corporate development), and former Anadys co-worker James Appleman, PhD, who sits on eFFECTOR’s scientific advisory board.

Elan Corp. PLC

Speranza Therapeutics

Elan spins off Speranza Therapeutics to develop CNS candidate ELND005

Elan Corp. PLC is spinning off ELND005 (formerly AZD103; scyllo-inositol), its Phase II small-molecule beta-amyloid aggregation inhibitor/myo-inositol level regulator for neurodegenerative conditions, to Speranza Therapeutics (also known as Speranza Biopharma Ltd.), a newly formed, private Ireland-based company. (May)

Elan will retain an 18% stake in Speranza in exchange for $70mm in funding up front ($63mm and a $7mm 10-year interest-free loan), plus potentially another $8mm down the road. Elan is also entitled to 3% worldwide royalties on ELND005 in major markets (the royalties may be reduced in the event of generic competition or other circumstances); $400mm in two equal milestone payments tied to the sale of Speranza or all of its assets, and the achievement of $1.5bn in global annual net income; and an exclusive option on commercial rights in certain countries. Nerano Pharma Ltd., a third-party financial partner, will loan Speranza $20mm initially (in addition to possibly $2mm more) and hold 62%. Speranza management will own the rest of the company. The new entity expects to file an NDA for ELND005 in its lead indication of Alzheimer’s disease (including associated agitation and aggression) in 2015-2016. Elan has also developed the candidate for bipolar disorder and Down syndrome. Transition Therapeutics licensed Elan exclusive global rights to ELND005 in September 2006 (Transition got the compound through its acquisition of Ellipsis Neurotherapeutics in March 2006). Speranza will now take over the responsibilities of the Transition agreement. ELND005 was the last candidate left in Elan’s pipeline. In February 2013, Elan divested its 50% share of the multiple sclerosis drug Tysabri to partner Biogen Idec in exchange for $3.25bn plus royalties on future sales. Since then, Elan has restructured and has been attempting to diversify its business, despite a nearly $7bn hostile offer from Royalty Pharma. In addition to spinning off Speranza, Elan made two acquisitions in the same day: for $40mm, Elan acquired a 48% stake in Dubai-headquartered NewBridge Pharmaceuticals, which sells drugs, devices, and diagnostics in Africa, the Middle East, and Turkey; and Elan paid $685mm for all of rare disease firm AOP Orphan Pharmaceuticals. Elan also recently spent $1bn in exchange for a 21% interest in Theravance and GSK’s respiratory program. Investment Banks/Advisors: Citigroup Inc.; Davy Corporate Finance; Evercore Partners; Morgan Stanley & Co. (Elan Corp. PLC)

ElsaLys Biotech

Institut Merieux

Transgene SA

ElsaLys Biotech spins out of Transgene, raises €2.1mm in Series A round

Immunotherapeutics company Transgene SA (majority owned by Institut Merieux) has spun out ElsaLys Biotech, and participated in the monoclonal antibody firm’s €2.1mm ($2.7mm) Series A round, which also included Sofimac Partners. (May)

Former Transgene R&D vice president Dr. Jean-Yves Bonnefoy takes the helm as ElsaLys’ CEO, and is joined by Dr. Christine Guillen (ex-manager of external R&D collaborations) as COO. The company will take IP from academic partners surrounding monoclonal antibodies for cancer and inflammatory diseases and develop candidates through in vivo proof-of-concept, with an initial project already in the wings for pancreatic cancer that was discovered by professor C. Borg, EFS, Diaclone, and Franche-Comté University. ElsaLys hopes to then partner clinical development projects with other biotechs. In addition to the pancreatic cancer compound, ElsaLys has three programs lined up, with technology licensed from partners including the Curie Institute, EFS, the Tumor Institute of Turin, and SATT-Sud Est.

Eyevensys SA

Eyevensys opens Series B venture round

Gene therapy firm Eyevensys SA has opened its Series B round with an undisclosed investment from Boehringer Ingelheim Venture Fund, which will take a seat on the company's board. Returning shareholders Innobio (managed by CDC Enterprises), Inserm Transfert Initiative, and CapDecisif Management also participated. (Apr.)

Formed in 2009, Eyevensys has used technology based on the research of Paris Descartes University’s Professor Francine Behar-Cohen to develop a nonviral gene therapy for ocular diseases, including uveitis and age-related macular degeneration. (Down the road Eyevensys may develop it for diabetic retinopathy.) The company will use the new money to finalize preclinical studies, start clinical trials within the next year-and-a-half, and finish Phase IIa trials. Eyevensys employs a single-use device that ensures the electrotransfer of plasmids into the ciliary muscle, which enables a continuous expression of therapeutic proteins. Less invasive than current treatments, the eye medicine will only be injected every six months (instead of bi-weekly or monthly). Eyevensys brought in €1.6mm ($2mm) through its first round in early 2012.

Jennerex Biotherapeutics Inc.

Jennerex closes $21.6mm late round

In what appears to be its Series F round, Jennerex Biotherapeutics Inc. (vaccinia-based cancer vaccines) has raised $21.6mm. Return investor Transgene SA provided $2.5mm (bringing its stake in the company to 10%), and was joined by other undisclosed buyers. Since inception, Jennerex has raised over $50mm through six rounds, with most of the proceeds going towards development of Pexa-Vec (pexastimogene devacirepvec; JX594), which is in Phase IIb for hepatocellular carcinoma and additional Phase II trials for colorectal and kidney cancers. (May)

Karyopharm Therapeutics Inc.

Series B round brings $48.2mm to Karyopharm

Karyopharm Therapeutics Inc. (nuclear transport modulators for cancer) plans to use the $48.2mm raised through a Series B round to fund clinical trials of its KPT330, a Phase I compound for advanced, relapsed, or refractory blood and solid tumors. An undisclosed private investor led the round, and was joined by additional buyers including Delphi Ventures, which takes a seat on Karyopharm's board. (May)

Kite Pharma Inc.

Kite Pharma completes $35mm Series A round

Kite Pharma Inc. (targeted immunotherapeutics for cancer) raised $35mm through its Series A round. New investor Alta Partners participated, along with all returning major backers including company executive chairman Arie Belldegrun, MD, Pontifax, Commercial Street Capital, and individual investors David Bonderman and Michael Milken. Alta and Pontifax will take seats on Kite's board. (May)

The private placement included the sale of $20mm Series A preferred shares, and the conversion of $15mm in promissory notes into Series A preferred shares. Under a CRADA with the surgery branch of the National Cancer Institute, Kite is using its engineered Adoptive Cell Therapy (eACT) platform to develop immunotherapeutics made up of autologous T-cells that are taken from the patient and engineered to target and kill tumors regardless of origin, stage, or exposure to prior treatments. Kite is also working on a renal cell carcinoma (RCC) compound that is entering Phase I trials. This project is a potential autologous dendritic cellular therapy that consists of the tumor-expressed antigen CAIX fused with the immunostimulant GM-CSF, and provokes the immune system to attack CAIX-expressing tumors such as RCC.

Lumena Pharmaceuticals Inc.

Lumena Pharmaceuticals closes $23mm Series A round

Rare liver disease drug developer Lumena Pharmaceuticals Inc. has raised $23mm in its Series A financing from Pappas Ventures, RiverVest Venture Partners, and Alta Partners. Representatives from Pappas and RiverVest have joined the start-up’s board. (May)

Lumena was founded in 2011 to initially develop an apical sodium-dependent bile acid transporter (ASBT) inhibitor for obesity and diabetes licensed from Satiogen Pharmaceuticals, which discovered what it calls the bile acid brake, a metabolic regulatory mechanism that suppresses food intake and glucose levels when large amounts of bile acids accumulate in the colon and rectum. ASBT’s activity is contained to the luminal surface of the lower portion of the small intestines, so that there is no toxicity or systemic absorption. Lumena has since switched focus, and is instead taking some ex-Big Pharma assets that were originally investigated in the cardiovascular disease area (also against ASBT) and pursuing oral treatments that reduce the build-up of bile acids, which leads to progressive liver damage. The company’s lead candidate LUM001 is a Phase II-ready ASBT blocker for cholestatic liver disease in children and adults. The program will address progressive liver damage and other symptoms (including excessive intractable itching that leads to skin destruction, bleeding, and scarring) linked to impaired bile acid flow and retention of bile acids in the liver. LUM001 lowers serum bile acid levels and prevents intestinal bile acids from being recycled back to the liver, stopping the acids from accumulating to improve liver function. Lumena expects to move LUM001 into Phase II studies for both primary biliary cirrhosis in adults, and Alagille syndrome and progressive familiar intrahepatic cholestasis in children. Searle discovered and was developing LUM001 as a cholesterol reducer. Pfizer, which acquired Pharmacia in 2002 (Pharmacia bought Searle in 2000), has licensed LUM001 to Lumena. (Bradley Keller, PhD, the scientist responsible for the candidate while at Pharmacia, is now Lumena’s VP of research.) Lumena is also developing another ASBT inhibitor LUM002, in Phase I for cholestatic diseases. The biotech has rights to patents and clinical/nonclinical data on this compound from Sanofi, which was also working on LUM002 as a cholesterol-lowering agent.

NGM Biopharmaceuticals Inc.

Series C brings in $50mm for NGM Biopharmaceuticals

NGM Biopharmaceuticals Inc. (cardio-metabolic disease therapies) has raised $50mm through a Series C financing to 14 undisclosed investors. (Apr.)

Opsona Therapeutics Ltd.

Opsona Therapeutics brings in €33mm through oversubscribed Series C round

Opsona Therapeutics Ltd. (developing drugs that use the innate immune system to treat disease) raised €33mm ($43mm) through its oversubscribed Series C round led by returning buyer Novartis Venture Funds and new investor BB Biotech Ventures (both gain representation on the company's board). Existing backers Fountain Healthcare Partners, Roche Venture Fund, and Seroba Kernel Life Sciences also participated along with new investors Sunstone Capital, Baxter Ventures, Amgen Ventures, and EMBL Ventures. Opsona will use the Series C proceeds to fund an upcoming Phase II trial of lead candidate OPN305, a fully human monoclonal IgG4 antibody targeting Toll-like receptor 2 for renal transplant patients at high risk for developing delayed graft function. (Apr.)

Scioderm Inc.

Series A round brings in $16mm for Scioderm

Morgenthaler Ventures led Scioderm Inc.’s (skin disease therapeutics) $16mm Series A venture round. Technology Partners also participated. (Apr.)

Formed in 2012, Scioderm is developing SD101, a topical cream for epidermolysis bullosa (EB), a rare genetic condition that causes skin to blister or tear with the lightest touch. There is no cure or effective treatment for the condition so EB patients usually resort to using wound care, pain management, and preventative bandages as the skin is easily scarred and those with the disease do not usually live beyond 30 years of age. In a Phase II study that was completed, SD101 resulted in the complete closure of 88% of chronic lesions in less than a month and a 57% reduction of lesions on the body after three months of treatment. The drug candidate is also in preclinical studies for diabetic ulcers and psoriasis. Lotus Tissue Repair, another company that is developing a late-stage therapeutic for EB, was acquired by Shire earlier this year.

Tacurion Pharma Inc.

Tacurion Pharma receives $15mm in Series A funds concurrent with licensing of nocturia candidate from Astellas

Tacurion Pharma Inc., the third virtual company formed by Drais Pharmaceuticals Inc. since April 2012, received $15mm in its Series A financing from InterWest Partners, Sutter Hill Ventures, and Astellas Venture Management. (May)

Tacurion will use the funds to develop the Phase IIa-ready nocturia compound ASP7035, which it concurrently licensed from Astellas Pharma Inc. Astellas has an option to acquire Tacurion upon the success of a proof-of-concept trial, which is slated to begin during the third quarter of 2013. Drais' management team will run Tacurion. Last year, Drais formed Telsar Pharma and Seldar Pharma to develop in-licensed Astellas candidates. Both start-ups received Series A funding from the same three Tacurion investors.

Tokai Pharmaceuticals Inc.

Series E round brings $35.5mm to Tokai

Tokai Pharmaceuticals Inc. (prostate cancer therapeutics) raised $35.5mm through its Series E round from returning backers Apple Tree Partners and Novartis Venture Funds, along with 17 other investors. Proceeds will fund a Phase II trial of galeterone, a CYP17 lyase inhibitor for castration resistant prostate cancer. (May)

Trevena Inc.

Series C brings in $60mm for Trevena

GPCR-targeted medicine developer Trevena Inc. has closed its $60mm Series C venture round. Forest Laboratories Inc. invested $30mm as part of a concurrently announced licensing option agreement for Phase IIb-ready TRV027 for acute decompensated heart failure. It gains representation on Trevena’s board. Current shareholders Alta Partners, HealthCare Ventures, NEA, Polaris, and Yasuda Enterprise Development Co. also participated. (May)

Trino Therapeutics Ltd.

Series A raises €9.2mm for Ireland's Trino Therapeutics

Trino Therapeutics Ltd. (developing anti-inflammatory and gastrointestinal therapeutics) raised about €9.2mm ($11.9mm) in its Series A financing from new backer Fountain Healthcare Partners and founding shareholder Wellcome Trust. Both firms will appoint board members. (May)

The company will use €2.2mm of the funds to finish GMP manufacture and preclinical studies of its PH46A, while the remaining money will bring the candidate into the clinic and complete initial Phase II trials. Trino spun off from Trinity College (Dublin) in September 2011. It is working on a new class of therapeutics based on the indane skeleton derived from a Taiwanese fern. Lead compound PH46A is an oral small-molecule being studied for inflammatory bowel disease, ulcerative colitis, and Crohn's disease. Trino’s other investors are Enterprise Ireland and Growcorp.

RESEARCH, ANALYTICAL EQUIPMENT & SUPPLIES

Hurel Corp.

Spring Mountain Capital leads $9.2mm Series A round for Hurel

SMC Select Co-Investment Fund I (affiliated with Spring Mountain Capital) has led a $9.2mm Series A financing for Hurel Corp. (preclinical drug discovery tools). Other private investors also participated. (Apr.)

Through exclusive patent licenses from Cornell University, Hurel has developed the HuRELflow biochip, which is loaded with living cells aimed at reproducing biological systems as alternatives to animal testing. The chips are comprised of separate but fluidically interconnected organ or tissue constructs, each of which contains living cells that mimic the primary activity of that organ or tissue. Drug candidates are added to the culture medium and circulate throughout the chip (via microfluidic channels). By assessing certain physiological responses, researchers can determine the effects of the compounds and their metabolites on the cells within each construct. One of the company’s goals is to predict liver toxicity--the primary cause for drugs to fail in clinical trials--earlier in the development process. The HuRELstatic primary human hepatocyte co-culture used in drug screening can estimate the success of potential candidates moving into the clinic. Besides pharmaceutical work, Hurel also performs toxicology prediction in the cosmetic, industrial, and environmental areas. For instance, Hurel has a collaboration with L’Oreal to develop an allergy test on a chip to evaluate skin irritation to cosmetics. Hurel, which was founded in 2005, has been backed by its CEO Robert Freedman, the managing principal at Athena Capital Partners, and a small group of accredited investors.

Intrexon Corp.

Synthetic biology company Intrexon completes $150mm Series F round

In the same month in which it has signed infectious disease deals with AmpliPhi Biosciences and Soligenix, Intrexon Corp. (multigenic technologies that regulate biological molecules used in human drugs, protein production, industrial applications, agriculture biotech, and animal health) has also completed a $150mm Series F offering of preferred stock to 57 investors. Most of the funding came from first-time backers, which were joined by affiliates of Intrexon’s chairman and CEO Randal J. Kirk and Third Security. Including the current round of financing, Intrexon has raised a total of $509mm since inception. The company will use the new money to forge additional collaborations in the health care, food, energy, and environmental areas; further develop its platforms; and expand its sales and marketing and R&D teams. (May)

RainDance Technologies Inc.

Series E brings in $20.3mm for RainDance Technologies

Sequencing firm RainDance Technologies Inc. has raised $20.3mm through its Series E venture round. All current shareholders participated, including Mohr Davidow Ventures, Quaker BioVentures, Alloy Ventures, Acadia Woods Partners, and Sectoral Asset Management. New strategic equity partner Myriad Genetics Inc., and two other undisclosed backers also invested. (Apr.)

Myriad Genetics and RainDance recently penned a multi-year commercial supply deal under which Myriad will use RainDance’s ThunderStorm system for targeted sequencing of Myriad’s hereditary cancer panel. RainDance will use the new money for global commercialization of ThunderStorm and recently launched RainDrop digital PCR system, as well as relocation of the company headquarters, which will enable it to expand its operations and manufacturing capabilities. According to RainDance's Form D regarding the financing, it could bring in another $16mm before closing.