Eloxx Pharmaceuticals, an Israel-based developer of therapies aimed at genetic diseases, raised $8m from investment firm LSP on Wednesday to close its series C round at $38m.
The initial $30m tranche was closed last month and led by Pontifax, with participation from medical diagnostics technology maker Opko Health, Korea Investment Partners, DSC Investments, the Quark Venture and GF Securities-managed Global Health Science Fund and angel investor Phil Frost.
The series C round comes ahead of a reverse merger of Eloxx with biopharmaceutical firm Sevion Pharmaceuticals. The companies signed a definitive agreement in June 2017 that will involve Sevion rebranding to Eloxx and applying to list its shares on Nasdaq.
Founded in 2013, Eloxx is working on treatments for genetic diseases caused by a change in DNA known as nonsense mutation. Its lead candidate, ELX-02, is aimed at cystic fibrosis and cystinosis.
The company will use the series C capital to initiate phase 2 trials for ELX-02. Martijn Kleijwegt, managing partner of LSP, will join Eloxx’s board of directors.
Pharmaceutical firm Roche and Pontifax provided an undisclosed amount of series A funding for Eloxx in 2013. The company has not revealed details about its series B round.
Silvia Noiman, co-founder and chief executive of Eloxx Pharmaceuticals, said: “We are very pleased to have attracted an outstanding global syndicate of investors to participate in our series C financing.
“The latest investment from LSP is a validation from one of the best life science funds in the world. With the funds from the series C (round), we anticipate advancing our lead product candidate, ELX-02, into multiple phase 2 studies later this year.”