US-based pharmaceuticals company Viamet has been chosen by US government agency The National Institutes of Health (NIH) to develop one of the firm’s antifungal compounds, in return for an undisclosed amount of funding.
In February 2010, Viamet signed a licensing option agreement with Novartis Option Fund, the corporate venturing division of Switzerland-based pharmaceutical conglomerate Novartis, for its Metallophile technology. The agreement included an undisclosed upfront fee, but the deal could potentially see Viamet receiving over $200m in milestone payments from Novartis, as well as product royalties.
Since then, Viamet has raised $25m in funding in February of this year, according to a filing with the US Securities and Exchanges Commission. The round was co-led by Novartis and Lilly Ventures, the corporate venturing unit for US-based pharmaceutical multinational Eli Lilly.
Other investors in the round included the Lurie Investment Fund, representing the US-based Ann and Robert H Lurie Foundation, and the US-based venture capital firms Hatteras Venture Partners and Intersouth Partners.
Viamet raised $18m in a July 2009 series B round also led by Novartis and Lilly Ventures. Astellas Venture Management, which provides the same function for Lilly’s Japan-based counterpart Astellas Pharma, was also among the investors, as were The Lurie Investment Fund, Hatteras and Intersouth.
Hatteras and Intersouth had previously funded Viamet’s series A round, which raised $4m in June 2007.
Viamet’s compound, developed to treat the fungal infection cryptococcal meningitis, will be included in the NIH’s Therapeutics for Rare and Neglected Diseases program. Viamet’s compound was one of only four selected for funding through the program.