Finance, Grants, Deals

MODAG GmbH, a new German company focused on neurological diseases, has raised €12 million in a Series A financing round to bring its lead product for multiple system atrophy (MSA) into clinical development. MSA is a rare neurodegenerative disorder characterised by the progressive loss of function and death of different types of nerve cells in the brain and spinal cord. According to the US National Institutes of Health, there are currently no drugs that are capable of slowing the progression of the disease.

Sanifit Therapeutics SA has raised €72.2 million from venture finance and convertible bonds to take its orphan drug candidate SNF472 into Phase 3 development for the treatment of calciphylaxis, a disease where calcium accumulates in small blood vessels in fat and skin tissues. This causes blood clots and serious infections which frequently leads to death.

The fundraising consisted of €55.2 million in Series D finance and €17 million in convertible bonds.

Erytech Pharma SA has teamed up with SQZ Biotechnologies Co, a spin-out of the Massachusetts Institute of Technology, to develop antigen-specific immune modulating therapies for cancer. The collaboration uses Erytech’s technique for encapsulating drug substances inside red blood cells to inform drug development by SQZ. The MIT spin-out is a cell therapy company.

The Spanish pharmaceutical company Almirall SA has received a €120 million loan from the European Investment Bank (EIB) to support research into new treatments for inflammatory and dermatological diseases.

The loan is being granted under a European Commission ‘Investment Plan for Europe’ that is mobilising public funds for new technologies and employment. The company will direct the funds towards research into pathologies such as psoriasis, atopic dermatitis and actinic keratosis, a type of precancerous cutaneous lesion.

AbbVie Inc is making a cash and stock offer valued at $63 billion for the specialty pharma company Allergan Plc, a move that will diversify its portfolio ahead of the loss of patent protection for its lead rheumatoid arthritis product Humira (adalimumab). Humira generated revenue of $20 billion last year, or 68% of AbbVie’s total revenue, but it will lose patent protection in 2023.

Luxembourg-based Vesalius Biocapital Partners has closed its third life science fund, raising €120 million for later-stage European companies. The fundraising includes a commitment of €30 million from the European Investment Fund and new and existing investors from Europe, the Americas and the Middle East and North Africa.

The UK medical charity LifeArc is to make a $30 million equity investment in the antibody therapeutics company Kymab Ltd along with a licencing agreement giving it rights to the company’s drug discovery platform. The investment is taking place in two stages. An initial $10 million has already been paid, while the final $20 million will come at a future date. Kymab will also receive a percentage of revenues that LifeArc generates from any products discovered and commercialised using its technology.

NOXXON Pharma NV is to test its RNA oligonucleotide drug NOX-A12 in a new cancer indication after signing an agreement with an unidentified large pharma company to conduct preclinical studies of the drug.

Calliditas Therapeutics AB of Sweden has entered into a licencing agreement with Shanghai-based Everest Medicines II Ltd to develop and commercialise its candidate drug Nefecon (budesonide) for the Chinese market. Nefecon is currently in a Phase 3 pivotal trial for the treatment of patients with the chronic autoimmune kidney disease IgA nephropathy. The agreement gives Everest exclusive rights to develop and, depending on regulatory approval, sell the drug in mainland China, Hong Kong, Macau, Taiwan and Singapore.

Belgium-based Imcyse SA has raised €35 million in a Series B financing round to support development of its immunotherapies for severe chronic diseases. The funding comes as the company awaits data from a multi-centre trial of its lead peptide-based product in patients with recent onset, insulin-dependent Type 1 diabetes. The double-bind, placebo-controlled Phase 1b study is expected to report results at the end of the summer.