US-based drug developer Proteostasis Therapeutics raised a $37m series B round on Tuesday featuring pharmaceutical firms Sanofi and Novartis, as well as Elan Science One, a subsidiary of healthcare company Perrigo.
The round, secured in the form of mezzanine capital, was led by Cormorant Asset Management. Fidelity Biosciences, a venture capital arm of financial services firm Fidelity Investments, Rock Springs Capital, New Enterprise Associates and Healthcare Ventures also took part.
Novartis contributed funds through investment subsidiaries Novartis Bioventures and Novartis Venture Fund, while Sanofi participated through corporate venturing division Sanofi-Genzyme BioVentures.
Proteostasis has developed a treatment for cystic fibrosis, currently an incurable, fatal genetic disorder which affects between 70,000 and 100,000 people globally. The life expectancy for patients is approximately 40 years.
The money will go towards clinical trials for the treatment as well as an expansion of Proteostasis’ pipeline. The company has already inked research collaboration agreements with biotechnology company Biogen and pharmaceutical firm Astellas Pharma.
Elan Science One was formed as a subsidiary of drug maker Elan Corporation, which has since merged with Perrigo, acquired a 24% stake in Proteostasis in return for a $20m equity investment and $30m in research funding in May 2011.
Proteostasis previously closed a $70.6m series A round in 2011, featuring Novartis Venture Fund, Genzyme Ventures, Fidelity Biosciences, Healthcare Ventures and New Enterprise Associates. The company also obtained $5m in debt financing in October 2014, according to a regulatory filing.
Leerink Partners acted as the placement agent for the series B offering.