US-based pharmaceutical company Epirus Biopharmaceuticals announced today that it has completed $36m in a series B round led by biotechnology company Livzon Mabpharm and has agreed a merger deal with biopharmaceutical drug developer Zalicus.
Adage Capital, Greenwoods Investment, Gibralt, Monashee Capital Partners and an investment affiliate of Mousse Partners participated as new investors, while existing backers TPG Biotech, Montreux Equity Partners and 5AM Ventures were also involved.
Online deals database Crunchbase states that Epirus had raised about $13m in funding prior to the series B round.
Epirus develops biosimilar monoclonal antibodies based on existing drugs and will use the funding to advance clinical development for, and eventually commercialise its lead product, BOW015, a biosimilar of Chron’s disease treatment Remicade for which Epirus intends to begin a Phase 3 clinical trial in Europe in early 2015.
Zalicus, formed in 2000 as CombinatoRx, develops drug candidates for treating pain and inflammation and went public in 2005.
Epirus will merge with a subsidiary of Zalicus in an all-share deal to create a Nasdaq-listed company that will aim to build a biosimilar portfolio. The company, which will retain the name Epirus Biopharmaceuticals, will be 81-86% owned by Epirus shareholders, the precise percentage depending on the amount of net cash Zalicus can bring to the deal.
“We are strong believers in the upside of this newly combined company and the potential of the biosimilar space,” said Zalicus CEO Mark H.N. Corrigan. “Epirus’ strategic model and experienced management team, coupled with Zalicus’ knowledge of the rheumatoid arthritis space and global clinical development expertise, position us well to leverage our strong relationships with key opinion leaders and experience in conducting European clinical trials in RA.”