Financing Drug Discovery: Recent Deals

by Marie Daghlian

A smattering of deals and financings marked the relatively quiet days before Thanksgiving. San Diego-based biotech Receptos closed a two-tranche $25 million series A financing. The company is focused on identifying and developing best- and first-in-class therapeutic candidates that target a family of membrane receptors known as G-Protein coupled receptors or GPCR. Investors include ARCH Venture Partners, Flagship Ventures, Lilly Ventures and Venrock.

Receptos’ technology comes from the labs of co-founders and Scripps researchers Raymond Stevens and Hugh Rosen. They joined forces at Scripps Research to develop a powerful GPCR technology platform and clinical candidate. Several Biogen Idec (BIIB) veterans are also co-founders of the company, including CEO William Rastetter, a former executive chairman at Biogen Idec.

Receptos will initially target the Edg family of receptor proteins, including sphingosine-1-phosphate receptor 1 (S1P1), for structure-based drug design. The company will also expand efforts into additional, select high-value GPCR targets independently and with corporate partners where structural insight is anticipated to elucidate receptor-ligand interactions and deliver both best- and first-in-class GPCR therapeutic candidates. Receptos expects its best-in-class S1P1 agonist candidate for autoimmune indications to enter the clinic in 2010. The S1P1 program is supported by the company's recently determined and proprietary protein crystal structure of the S1P1 receptor.

Finally, U.K. biotech Oxagen, a drug discovery and development company specializing in inflammation, completed a $26.7 million series C round led by Novartis Venture Funds, with participation by existing investors MPM Capital, SV Life Sciences, Advent Ventures, Bessemer Venture Partners, Omega, Abingworth, IBT, Red Abbey and The Wellcome Trust. Proceeds of the funding will be used primarily to advance Oxagen’s CRTH2 antagonist program in inflammatory and respiratory diseases, including the completion of an ongoing phase 2b clinical study of lead molecule OC000459 in moderate persistent asthma. This follows the successful completion of proof-of-concept (POC) studies in both asthma and allergic rhinitis. CRTH2, also known as DP2, is a cell surface receptor for prostaglandin D2 and is implicated in allergic inflammation. The funds will also be used to expand the therapeutic indications for CRTH2 antagonists using the lead molecule as well as back-up compounds.

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Comments

[jimmy Turano]

The Burrill Report should consider doing an article on "MRNA".
With the Wind of Words, the fog will be blown clear for all to see
where "MRNA" really stands as an investment today.
In need for a 12th Hour injection of funds to pay for 2010 Expenses,
and to stay open for business another year, it would be interesting to all, to really see what is on the Table for Investors right now.
So far this Company has kept their doors open for 26 years straight,
with hardly any products, no serious earnings revenues, and given shareholders the ROLLER-COASTER ride of their lives to date.
From $20 dollars to $.84 cents, but with more news releases than the White House.
After several new issuances of stock, warning letters from NASDAQ, letter of growing concern from their own accountants,
shareholders who are left, perceive this company as a winner?
PLEASE SHED SOME LIGHT, AND MAKE A DIFFERENCE!

2009 Nov 26 08:11 AM