US-based biopharmaceutical company Provention Bio has raised $28.4m through a private placement featuring Johnson & Johnson Innovation – JJDC, a subsidiary of pharmaceutical group Johnson & Johnson.
MDB Capital Group, the company builder that co-founded Provention, was placement agent for the offering, which included diabetes research finance organisation JDRF’s T1D Fund.
Provention is developing therapeutics and technology that can predict and prevent immune-mediated disease. It could end up preventing chronic autoimmune and inflammatory diseases like type 1 diabetes as well as Crohn’s disease and ulcerative colitis.
The company’s pipeline includes clinical-stage assets licensed from Johnson & Johnson subsidiary Janssen Research & Development and vaccine and diagnostics developer Vactech.
The series A preferred stock placement was closed in late April 2017 but only announced on Monday. Provention said it likely represents the first of a two-part financing process that will culminate in an initial public offering in 2018.
Ashleigh Palmer, co-founder and chief executive of Provention, said: “With our founding financing complete, we believe that Provention is ready to advance its mission of early disease interception and prevention.
“Our goal is to do more than merely treat the symptoms of chronic autoimmune and inflammatory diseases, such as type 1 diabetes, Crohn’s disease and ulcerative colitis.
“We hope to identify and combat the underlying cause, or trigger, of such diseases before symptoms emerge, and to intercept disease progression and relapse to eliminate or reduce long-term damage and chronic suffering.”