Series C secures $60mm for Aerovance

Aerovance, a company that develops respiratory and inflammatory biotech compounds, secured $60mm in a two-tranche Series C financing that was led by new investor Clarus Ventures and included new backer Alta Partners and returning investors Apax Partners, Lehman Brothers, NGN Capital, and Burrill & Co. Aerovance has received $28mm of the funds up front and will get the remaining $32mm when it achieves clinical, manufacturing, and other milestones. The company will use the money for clinical development of its two lead candidates, both in Phase IIa trials: an inhaled/IV interleukin-4/13 receptor antagonist for asthma (Aerovant) and eczema (Aeroderm) and an inhaled serine protease inhibitor for cystic fibrosis (Aerolytic) and COPD (Pulmolytic). Aerovance raised $32mm in its first financing after being spun-off from Bayer Pharmaceuticals in 2004.