US-based biopharmaceutical company Stealth BioTherapeutics disclosed $100m in convertible note financing on Monday from investors including an affiliate of conglomerate Nan Fung.
The financing was raised across two rounds, though Stealth has not revealed individual amounts. The first was led by Pivotal Beta, a venture capital fund operated by Nan Fung.
The first round also featured BVCF Management, CMBC Capital Holdings, Kingdon Capital, Ocean Equity Partners, Sagamore Investments and funds associated with Atlantis Investment Management. The second was led by Morningside Venture Capital.
Stealth is working on treatments for diseases linked to mitochondrial dysfunction. Mitochondria are responsible for generating 90% of the energy required by cells and are present in every cell in the human body except for red blood cells.
The company’s lead candidate, elamipretide, is aimed at primary mitochondrial myopathy (PMM), which causes muscle weakness and neurological issues such as fatigue; Barth syndrome, the symptoms of which include an enlarged and weakened heart; and Leber’s hereditary optic neuropathy (LHON), an inherited form of vision loss.
Stealth is also investigating elamipretide as a therapy for dry age-related macular degeneration, a leading cause for blindness for the elderly. The cash will go towards a phase 2b trial of elamipretide in intermediate dry age-related macular degeneration.
The company will also prepare for imminent regulatory and commercial milestones as elamipretide undergoes a phase 3 trial in PMM, a phase 2/3 trial in Barth syndrome and a phase 2/3 trial in LHON.
The capital will also support the advancement of other candidates into studies required to file for an investigational new drug with US regulator Food and Drug Administration. Vincent Cheung, managing partner of Pivotal, will join Stealth’s board of directors.
Morningside Venture was identified as a returning shareholder in the latest round but Stealth does not appear to have publicly disclosed details of earlier funding rounds.