Monday, November 17, 2008

ZafGen reported to have pulled in $14M Series B financing

By Mass High Tech Staff

Cambridge biopharmaceutical firm ZafGen Inc. has secured $14 million in a second round of funding, according to published reports. The financing was led by Third Rock Ventures, with additional investment support from return backer Atlas Venture, website PE Hub stated.

ZafGen develops obesity-related treatment.

Founded in 2005 by Maria Rupnick, a cardiologist at Children’s Hospital Boston and Brigham and Women’s Hospital, ZafGen pulled in its first cash infusion with $2 million in its 2006 Series A funding from Atlas and GreatPoint Ventures.

“Most therapies try to target what we do with the calories we consume. But it turns out that when you gain weight you have an increase in the blood vessels that supply (fat) tissue. When you lose weight those vessels prune away like the small branches of a tree,” Rupnick told Mass High Tech.  Her research has found approaches to obesity that are akin to anti-angiogenesis drugs in oncology.

In August, ZafGen announced the appointment of its first CEO Thomas Hughes, a metabolic disease expert with 20 years of industry experience. The company also said it is preparing its first drug for clinical trials next year.