Rhythm Metabolic, a subsidiary of biotechnology company Rhythm, closed a $40m series A round yesterday featuring pharmaceutical companies Pfizer and Ipsen, the former investing through its corporate venturing unit, Pfizer Ventures.
The round included Deerfield Management, the investment firm backed by several US-based hospitals, as well as OrbiMed Advisors, Wellington Management, MPM Capital, New Enterprise Associates (NEA), Third Rock Ventures and an unnamed public healthcare investment fund.
Rhythm Metabolic is working on a treatment for obesity caused by genetic deficiencies. The company is a subsidiary of Rhythm, which filed for an $86m initial public offering in August 2014, having raised a total of $73m from Ipsen, Pfizer, MPM, NEA and Third Rock. It withdrew the application in October.
The series A round will fund a Phase 2a clinical trial for the company’s treatment, Setmelanotide, and will support the scaling of Rhythm Metabolic’s clinical and business infrastructure with a view to conducting further clinical trials.
Keith Gottesdiener, chief executive of Rhythm, said: “We are very excited for this outstanding group of investors to join us in developing a new paradigm for treating rare genetic disorders of obesity.”