AAA Novo leads ZSPharma to better health

Novo leads ZSPharma to better health

Novo Ventures, the venturing unit of Novo Nordisk Foundation/ Novo Group/ Novo Nordisk/Novozymes A/S, has led a $55m series D round of funding for ZSPharma, a US company developing therapeutic drugs for hyperkalemia and liver disease. The round also included new investors RA Capital, Adage Capital, Sofinnova Ventures  and an undisclosed institutional investor.

The financing also included existing investors Alta Partners, Devon Park Bioventures, 3×5 Special Opportunity Fund, Salem Partners and RiverVest.

Proceeds will be used to advance development of ZS-9, the company’s lead product candidate for the treatment of hyperkalemia, through its New Drug Application (NDA) and Marketing Authorization Application (MAA) submissions in early 2015.

Hyperkalemia, or higher than normal potassium levels (typically defined as a serum potassium level >5 mEq/L), is a life threatening metabolic condition that can lead to cardiac arrhythmia and sudden cardiac death.

The company’s core focus is the research and development of highly selective ion-trap therapies to treat serious medical conditions.

US venture capital firm, RiverVest Venture Partners, and the 3X5 Special Opportunity Fund, a RiverVest affiliate fund operating out of the US that deals with later-stage companies in the health care and clean tech industries, invested a total of $6m in the deal. Both RiverVest and the 3X5 Special Opportunity Fund were investors in ZS Pharma’s $46m series C round closed in October 2012.

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