Semma Therapeutics, a US-based developer of treatments for diabetes, closed a $44m series A round featuring medical device manufacturer Medtronic yesterday.
The round was led by venture capital firm MPM Capital, which incubated Semma, and also featured VC firm Arch Venture Partners and Fidelity Biosciences, a life sciences subsidiary of financial services firm Fidelity Investments.
Drug producer Novartis Pharmaceuticals has agreed a strategic partnership with Semma alongside the equity funding, but neither company has disclosed details.
Semma is working on a cell therapy treatment for Type 1 diabetes involving the creation of functional, insulin-producing beta cells in a laboratory. Founder Doug Melton is co-chair of the Department of Stem Cell and Regenerative Biology at Harvard University.
The equity funding and Novartis agreement is expected to fund the advancement of Semma’s programme through clinical proof-of-concept tests in humans. Stephen Oesterle, Medtronic’s senior vice president for medicine and technology, has also joined its board as an observer.
Robert Millman, managing director of MPM Capital, is also joining Semma, as CEO. He said: “The ability to generate glucose-responsive, human beta cells through controlled differentiation of stem cells will accelerate the development of new therapeutics and I am thrilled and honoured to be part of it.
“We have assembled an experienced team with a track record of success in drug development. Our goal is to ensure we bring this remarkable discovery to patients as quickly as possible to reduce or eliminate their reliance on daily insulin injections.”