Novo Ventures, the corporate venturing like unit of Denmark-based medical foundation Novo, has led a $20m Series B round into Flexion Therapeutics for the development of Osteoarthritis drugs. Flexion’s existing investors 5AM Ventures, Pfizer Ventures, Sofinnova Partners, and Versant Ventures, also participated.
This latest investment brings the total raised by Flexion to $95m. Flexion raised $33m in a Series A in 2009 led by Versant Ventures followed by $42m in a second Tranche in 2010 led by Pfizer Venture Investments, the corporate venturing unit of the US-based pharmaceutical company.
The new funds will be used to continue the clinical development of the drug through 2013. Novo Ventures Partner Health Lukatch will now join Flexion’s board.
Mike Clayman, chief executive at Flexion, said: “There is tremendous unmet medical need in osteoarthritis. The currently available therapies are inadequate, and the field is ripe for innovation, we think both our 005 and 006 molecules have the potential to be disease-modifying drugs, although we are testing them to relieve symptoms.”
Novo Ventures has invested in more than 57 companies since 2000 for Novo, which is owned by the Novo Nordisk Foundation and owns shares in listed diabetes companies Novo Nordisk and Novozymes that have their own independent venturing programmes.