Privately held biopharma Chiasma has closed a $38.5 million equity financing and will use the funding to complete the pivotal Phase III trial of Octreolin, an oral formulation of the peptide octreotide in development for the treatment of acromegaly. The clinical trial is expected to complete in the second quarter of 2013.
Chiasma's Transient Permeability Enhancer (TPE) system both protects proteins and peptides from being attacked in the gut, and helps them to cross the gut wall into the bloodstream. Delivering octreotide orally and once-daily would be a major advantage for patients--the agent is currently injected into the muscle once a month, and is very thick, making these injections very painful and leaving the injection site swollen and tender.
The D round is led by new investor Abingworth and current investor MPM Capital, and also includes investments from 7 Med Health Ventures, Arch Venture Partners, F3 Ventures, and Fredric Price, Chiasma's chair and CEO. The funding will also finance a clinical study for a small molecule with potential in a complication of chronic kidney disease (CKD). According to Globes, this is the largest amount raised by an Israeli life sciences company since 2010. The company has raised $91 million in total.
Roni Mamluk, Chiasma's COO, explained that if the results of the Octreolin Phase III program for acromegaly are positive, the company plans to submit the product for approval in the U.S. and Europe in 2013.
- read the press release
- see the article in Globes