>>ANN ARBOR, Mich. and BASKING RIDGE, N.J., June 10 /PRNewswire/ -- QuatRx Pharmaceuticals Company, a private biopharmaceutical development company focused on endocrine, metabolic, and cardiovascular diseases, today announced the completion of its $28 million Series C financing. New investor MPM Capital, one of the world's largest dedicated investors in life sciences, led the financing with additional investments by InterWest Partners and founding investors Frazier Healthcare Ventures and TL Ventures. QuatRx has now raised a total of $36 million since its incorporation in December 2000.
"We are extremely pleased to be working with two new investors of the stature of MPM Capital and InterWest Partners," said Robert L. Zerbe, M.D., chief executive officer and president of QuatRx. "Their experience and insight will make them important contributors to the next phase of our growth. Our ability to attract leading investors results from both a promising psoriasis compound currently in Phase II clinical studies and a growing portfolio of exciting lipid compounds that possess major commercial potential."
The Series C funds will be used to expand and advance QuatRx's product development programs. QuatRx recently announced the acquisition of exclusive worldwide rights to two novel classes of orally active compounds for the treatment of lipid disorders. These new compounds are designed to treat important lipid abnormalities involving LDL-cholesterol, lipoprotein (a), and HDL-cholesterol. They may potentially be used as single agents or in combination with currently available lipid-lowering drugs. When approved, these products will compete in the rapidly expanding market for lipid-regulating therapies, the largest pharmaceutical product category in the world. Global sales of lipid-regulating drugs are currently estimated to exceed $20 billion annually, and continue to grow rapidly.
New Board Members
In conjunction with the financing, QuatRx named Nicholas J. Simon III, General Partner, and William Greene, M.D., Principal, both of MPM Capital, to its Board of Directors. Simon has over 20 years of operating experience in the biopharmaceutical industry including 11 years at Genentech where he was Vice President of Business and Corporate Development. He currently serves on the board of directors of several biopharmaceutical companies including ARYx Therapeutics, Biovitrum, Genteric, Genitope and Rinat. Dr. Greene was formerly a Senior Clinical Scientist at Genentech; prior to that he was in academic medicine at Yale Medical School and the University of California San Francisco, where he is an Assistant Professor of Medicine. He currently serves on the board of directors of Synergia Pharma and EsophyX, Inc.
"The QuatRx team has an outstanding track record in drug development, having played major roles in the development and commercialization of products such as Lipitor(R)," Mr. Simon said. "With this new round of financing, we believe they are well positioned to progress the exciting and novel opportunities currently in their pipeline toward successful development and commercialization."
QuatRx Portfolio of Drug Candidates Significantly Expanded
The acquisition of these novel lipid compounds significantly expands the roster of potential drug candidates in QuatRx's development portfolio both in size and scope. The first series of newly licensed compounds represents a class of dual action lipid-lowering agents that reduce both LDL-cholesterol and lipoprotein (a), two known independent risk factors for cardiovascular disease. QRX-401, the lead compound in this series, has demonstrated marked lowering of LDL-cholesterol and lipoprotein (a) in primate models and is expected to enter clinical trials within a year.
The second series of licensed compounds is designed to elevate low levels of HDL (the "good" cholesterol). A low serum level of HDL-cholesterol is widely recognized as an important contributor to cardiovascular disease.
The Company's pipeline also includes novel vitamin D analogues currently in clinical efficacy trials. In January 2003, QuatRx announced the initiation of a Phase II clinical study of a topical formulation of its novel vitamin D analogue, QRX-101, in patients with mild-to-moderate psoriasis. This represents the initial indication for which the drug will be developed. The QRX-101 phase II program involves 120 patients at 12 clinical test centers across the United States. The Company expects to complete this clinical proof of efficacy study before year end.
About MPM Capital
QuatRx's lead venture capital partner, MPM Capital L.P., is a global investment management firm focused solely on life sciences investing. One of the largest investment management firms dedicated to the life sciences sector, MPM Capital has offices in Boston, San Francisco and Munich. MPM's portfolio includes early stage start-ups as well as large capitalization public companies, representing biopharmaceutical and medical device companies, encompassing platform technology as well as product-driven opportunities. The firm manages over $2.1 billion in assets through the MPM BioVentures Family of venture capital funds and the MPM BioEquities public market funds. For additional information, please visit www.mpmcapital.com
About QuatRx
QuatRx Pharmaceuticals is a private biopharmaceutical company headquartered in Ann Arbor, Michigan, with offices in Basking Ridge, New Jersey. QuatRx is developing novel compounds beginning in the late pre-clinical stage, through the completion of phase II clinical studies. The Company's therapeutic focus is on endocrine, metabolic and cardiovascular diseases and dermatology. Compounds are being acquired from a variety of sources, including other biopharmaceutical companies, academic institutions and large pharmaceutical companies. For press release and other Company information, please visit www.quatrx.com .
As an investor and partner, InterWest Partners provides QuatRx with valuable industry, strategic, and corporate development expertise, as well as capital resources. InterWest Partners (http://www.InterWest.com), founded in 1979, is a leading diversified venture capital firm focused on building long-term relationships with entrepreneurs and portfolio companies. With $1.6 billion of capital under management, and a current investment fund of $750 million, InterWest's experienced partners bring together deep domain knowledge in life sciences and information technology. Examples of the firm's investments in life sciences include: ArthroCare, Corixa, Cor, Inspire Pharmaceuticals, Spinal Dynamics (acquired by Medtronic), and TheraSense. InterWest Partners has offices in Menlo Park, California and Dallas, Texas.
QuatRx's founding venture capital partners are Frazier Healthcare Ventures, based in Seattle, WA, and TL Ventures, located in Wayne, PA. Both of these partners have extensive experience in forming and financing emerging biopharmaceutical companies. These include ViroPharma, Inc., Tularik Inc., CV Therapeutics, Inc. and Adolor Corporation.<<
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