Novartis Venture Funds, the $750m corporate venturing division of pharmaceutical firm Novartis, has participated in a series B round of funding for Swiss-based biopharmaceutical company Covagen AG, which develops protein-based therapeutics for the treatment of inflammatory diseases and cancer. Covagen closed Its tranched B round of funding at CHF 42m ($46.9m) with the option to extend the round with an additional CHF 14m ( $15.6m), which would bring the total round to CHF 56m ( $62.6).
Investment company Gimv led the round. There was also involvement from Ascent Biomedical Ventures and existing investors Edmond de Rothschild Investment Partners, Seroba Kernel Life Sciences, Ventech and MP Healthcare Venture Management.
The new funds will be used to trail FynomAb® COVA322, a treatment for rheumatoid arthritis and other inflammatory diseases. The clinical trails are expected to begin in 2014.
Julian Bertschinger, chief executive of Covagen said: “Securing this major investment demonstrates the enthusiasm of our investors and their confidence in Covagen’s FynomAb platform. This financing will allow us to advance our lead product, COVA322, through proof-of-concept studies and support our collaborative relationships. We also would like to welcome Karl and Avi to our board of directors.”
Gimv’s Dr. Karl Naegler and Ascent Biomedical Ventures’ Dr. Avi Kometz will now join Covagen’s board of directors.
Covagen spun out of technology university ETH Zurich in 2007 backing with from pharmaceutical company Novartis.