Thursday, November 17, 2011

Agios takes in $78M for cancer metabolism treatment

By Julie M. Donnelly, Boston Business Journal

Agios Pharmaceuticals, a biotechnology start up focused on developing new cancer treatments, has raised $78 million in an oversubscribed Series C round of funding from a wide syndicate including venture capital firms, public investment funds and a big biotech company.

The Cambridge company said partner Celgene Corp.(Nasdaq: CELG) participated in the round, along with existing venture investors ARCH Venture Partners, Flagship Ventures and Third Rock Ventures. They were joined by several undisclosed investors, including three public investment funds.

In connection with the deal, Perry Karsen, COO of Celgene, has joined the Agios board of directors.

Agios is focused on cancer metabolism – understanding what feeds tumors and how and why they grow – is also expanding research into genetic orphan diseases. Proceeds of this financing will be used to advance the company’s early-stage cancer metabolism therapeutics and also to expand research and development into inborn errors of metabolism (IEMs), a group of genetic disorders with high unmet medical need.

“With this financing, we have achieved the financial strength necessary to move several programs into the clinic in genetically defined patient populations, taking us closer to the goal of bringing fundamentally new medicines to patients in need,” CEO Dr. David Schenkein said in a statement.

Agios was founded in 2008 and has raised a total of $261 million since then. The company also stands to earn milestone payments and potential royalties in conjunction with its Celgene deal, which was announced in April 2010.