Covagen, a company developing novel medicines for the treatment of inflammatory diseases and cancer, has attracted CHF 44.9m ($50.7m) in an extended series B round of funding from Baxter Ventures, the corporate venturing unit of pharmaceutical company Baxter International.
The Series B includes an option for all existing investors to invest an additional CHF 14m ($15.8m) in the future potentially increasing the total amount of this financing round to CHF 58.9m ($66.5m).
Covagen specialises in fynomers, which are small binding proteins that can be engineered to bind an antigen of interest. It currently uses bispecific FynomAbs by fusing its human Fynomer binding proteins to antibodies, resulting in therapeutics with novel modes-of-action and enhanced efficacy in the treatment of cancer and inflammatory diseases.
Geeta Vemuri, vice president and head of Baxter Ventures, said: “Covagen’s bispecific FynomAb technology and highly capable management team made this an attractive investment for Baxter. The unique capability of FynomAbs to access new biology and novel modes-of-action offers the potential to improve the lives of patients suffering from cancer and inflammatory diseases.”
The additional financing will primarily support the clinical development of Covagen’s lead FynomAb, COVA322, which is a bispecific TNF/IL-17A inhibitor for the treatment of rheumatoid arthritis, psoriatic arthritis and other inflammatory diseases. COVA322 has a novel mechanism of action not accessible with monoclonal antibodies and is expected to enter clinical trials in early 2014.
Tthe company has raised a total of $90.5m since its undisclosed seed funding in 2009, which was backed by MP Healthcare Venture Management and Novartis Venture Fund, both of which have contributed to later stage rounds. Other investors in the novel inffllammatory disease drug developer include Ventech, Seroba Kernel, Edmond de Rothschild Venture Capital, Gimv, and Ascent Biomedical Ventures.