Chiasma hauls in $70M to write its post-Roche futureMar. 2, 2015
Israeli-American biotech Chiasma has raised $70 million in Series E cash, moving on from an aborted collaboration with Roche ($RHHBY) and rolling toward FDA approval with a treatment for the hormone disorder acromegaly.
With the money, Chiasma plans to file an FDA application for oral octreotide, a treatment for the rare disorder. The company expects to submit the drug next quarter and, if everything goes according to plan, launch it soon thereafter, using its latest fundraise to assemble a marketing team.
Back in early 2013, Roche partnered up with Chiasma in a deal worth up to $595 million to get its hands on oral octreotide, but the agreement fell apart just after pivotal trials. That left Chiasma with just a $65 million upfront fee and undisclosed fraction of Roche's promised milestone payments.
Previous investors MPM Capital, F2 Capital, 7 Med Health Ventures, Abingworth and Arch Venture Partners pitched in on the latest round alongside new backers Rock Springs Capital and Sofinnova Ventures. And now Chiasma has the funds it needs to push the top prospect forward and advance new candidates using its bioavailability-boosting Transient Permeability Enhancer (TPE) technology.
"The commitment from both new and existing investors provide us with the resources to advance our regulatory efforts, prepare for a successful launch of octreotide capsules, test oral octreotide capsules for additional indications and further invest in earlier-stage TPE programs that can fuel our growth over the long term," Chiasma CEO Roni Mamluk said in a statement.
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