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Print Edition StoriesThursday, March 5, 2009
Proteon pulls in $38M in VC, does Novartis deal worth up to $550M
By Marc Songini
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Biopharmaceutical startup Proteon Therapeutics Inc. has completed a $38 million Series B equity financing deal and has signed a deal with Novartis worth a potential half billion dollars.
The privately-held Waltham-based company stated that MPM Capital, acting for MPM Bio IV NVS Strategic Fund LP, led the round. The round included new investor Vectis Healthcare & Life Sciences Fund, along with existing investors, such as TVM Capital, Skyline Ventures, Prism VentureWorks and Intersouth Partners. There were also several original angel investors involved, as well.
This round comes just as Proteon initiated its Phase 1/2 human clinical study of its lead candidate, PRT-201. This drug is intended to treat patients with end stage renal disease facing surgery for arteriovenous fistula creation.
During surgery, PRT-201 functions by dilating parts of arteries and veins and increasing blood flow. The company claims this should simultaneously lower maturation failure rates of arteriovenous fistula — the abnormal connection between arteries and veins — and lead to fewer chronic hemodialysis procedures.
The company has further added to its cash by inking a deal with pharmaceutical giant Novartis AG. Under the agreement’s terms, Novartis will retain an exclusive option to acquire Proteon after the successful completion of a Phase 2 clinical study of PRT-201; it also will have potential secondary rights to a global license under stipulated conditions. Between the acquisition and potential regulatory milestone payments, the deal with Novartis could top $550 million.
In related news, Proteon also announced it was appointing Steven St. Peter to its board of directors. St. Peter is managing director of MPM Capital.
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