ViaCyte, a US-based regenerative medicine company, has raised $10.6m through the sale of series C-1 preferred stock, together with warrants to purchase stock. The financing, conducted as a rights offering to ViaCyte series B and C preferred stock holders, included the company’s largest existing investors – Johnson & Johnson Development Corporation, the venture capital subsidiary of healthcare company Johnson & Johnson, biomedical-focussed investment firm Sanderling Ventures and Asset Management Company (Johnson Trust).
The financing will support the clinical development of VC-01 , ViaCyte’s cell therapy product for insulin dependent diabetes.
This funding serves as a match for a $10.1m Strategic Partnership Award (SPA) that was approved last October by the California Institute for Regenerative Medicine (CIRM) to support clinical evaluation of VC-01.
ViaCyte may sell additional shares of Series C-1 Preferred Stock and warrants in one or more subsequent closings that may occur during the remainder of 2013.
Paul Laikind, ViaCyte’s president and chief executive officer, said: “We are very gratified by the continued support of our investors and CIRM as we prepare to evaluate the safety and efficacy of VC-01. This promising product candidate has the potential to vastly improve the lives of millions of patients who currently require insulin injections to survive.”