STOCKHOLM, July 13, 2018 /PRNewswire/ --
Funds to be used to continue the clinical development of sevuparin for sickle cell disease
Modus Therapeutics AB, a company developing innovative treatments in high unmet medical need disease areas with a focus on sickle cell disease (SCD), announces that it has raised SEK 140 million in a financing led by new investor HealthCap. HealthCap is a European venture capital firm with a focus on investments in breakthrough therapies of diseases with highly unmet medical needs.
HealthCap will invest SEK 60 million in a series A preferred financing. At the same time, existing shareholders will convert outstanding convertible notes into shares. The new equity investment together with the conversion amounts to over SEK 140 million.
Ellen K Donnelly, PhD, CEO of Modus Therapeutics, said: "We welcome the support of HealthCap, a high-profile life science investor, alongside the continuing commitment of our existing shareholders. The funds that we have raised will allow us to complete our current Phase II trial with sevuparin in patients with SCD and commence a new program focused on a subcutaneous formulation."
Modus's lead candidate drug sevuparin is an innovative, proprietary polysaccharide drug with anti-adhesive, anti-aggregate and anti-inflammatory effects due to its multimodal mechanism of action. Currently being evaluated in a Phase II clinical study, sevuparin has the potential to restore blood flow and prevent further microvascular obstructions in children and adults with SCD.
HealthCap Partner Mårten Steen said: "HealthCap sees ample opportunities for Modus Therapeutics' orphan drug candidate sevuparin to be an important treatment for SCD patients. We look forward to the next important step in the company's development, which is the completion of the ongoing Phase II study and prepare for pivotal studies."
About Modus Therapeutics AB
Modus Therapeutics is a Swedish biotech company developing sevuparin for diseases with high unmet medical need with a focus on sickle cell disease (SCD) and malaria.
Sevuparin is currently being tested in a Phase II clinical study for SCD - a painful, inherited blood disorder affecting millions of people around the globe. SCD patients' blood cells form a sickled shape, which makes blood flow to vital organs difficult, causing severe pain and even premature death. Sevuparin has the potential to improve the SCD patients' blood flow reducing their pain and the amount of time they will need to spend in hospital. Modus plans to develop an administration form of sevuparin that the patient can self-administer allowing them to live a more normal life by preventing the painful episodes requiring hospital care.
Modus is predominantly owned by KDev Investments AB, a part of Karolinska Development AB (Nasdaq Stockholm: KDEV) and Rosetta Capital. HealthCap now joins other large owners that include The Foundation for Baltic and European Studies (Östersjöstiftelsen), Ergomed and Praktikerinvest AB. For more information, please visit http://www.modustx.com.
Sevuparin is an innovative, proprietary polysaccharide drug with anti-adhesive, anti-aggregate and anti-inflammatory effects due to its multimodal mechanism of action. Sevuparin has the potential to restore blood flow and prevent further microvascular obstructions in a number of diseases including SCD and malaria. In SCD, the anti-adhesive effects of sevuparin could thereby offer treatment of the underlying cause of vaso-occlusive crisis (VOC) in SCD patients, with earlier pain relief, shorter hospital stays, reduced need of opioids and improved quality of life. Modus is currently enrolling patients in a Phase II study with the aim to enroll the last patients by year end.
About sickle cell disease
Sickle cell disease (SCD) is a painful, inherited blood disorder affecting millions of people around the globe and the most common inherited blood disorder in the U.S. affecting between 90,000-100,000 subjects, with medical care costs amounting to more than $1 billion. In Europe it is estimated that there are 35,000-40,000 SCD patients, with an even higher number in the Middle East and North Africa regions, with over 850,000 SCD patients.
There is currently no pharmaceutical product available that targets the underlying cause of VOCs that affect SCD patients. Current therapies are predominantly strong intravenous pain medications and SCD patients often must be hospitalized to be treated.
For further information, please contact:
Ellen K Donnelly,
David Dible/ Pip Batty
Citigate Dewe Rogerson
SOURCE Modus Therapeutics