Reata Pharmaceuticals, a US-based diabetes drug development company, has raised $78m in its sixth round of venture funding.
Denmark-based healthcare investment company Novo, which invests on behalf of its parent the Novo Nordisk Foundation, and CPMG, a venture capital firm formed out of private equity firm Cardinal Investment Company, led the round.
Reata has now raised $180m, it said, although its total was $174.8m according to its company press releases.
The latest investment will fund the second of two trials of its lead product candidate, bardoxolone methyl, in patients with advanced chronic kidney disease and Type 2 diabetes.
Jack Nielsen, a partner at Novo and a director of Reata since its first investment in 2006, said: "Bardoxolone has the potential to have a significant effect on public health worldwide."
Warren Huff, Reata’s chief executive, said: "This financing provides Reata with sufficient capital to fully fund our entire pivotal trial program for bardoxolone, while also advancing other potential products from our pipeline into clinical development."
Reata said it would build a commercial organisation in the US to launch bardoxolone and in December signed a partnership with Kyowa Hakko Kirin for Japan and certain other Asian markets.
Reata said its previous funding rounds were: $32m in March last year as the first tranche of a private financing round; $25m in July 2007; $22.6m in August 2006; $12m in November 2004; and $5.2m in total start-up financing completed in September 2003 led by Ojai Goliad with STARTech Early Ventures supporting.