US-based regenerative medicine company ViaCyte has received $20m as part of a recently agreed rights agreement with Janssen Research & Development, a subsidiary of pharmaceutical company Johnson & Johnson.
ViaCyte develops therapeutics to combat diabetes, for which its VC-01 product is being trialled as a potential long-term treatment.
The agreement will provide Janssen with the option to evaluate a transaction related to VC-01, which will continue throughout the drug’s trial stages. The funds, which will be used for research development, include a rights fee and a note convertible into equity at a later date.
Earlier this month Viacyte raised $5.4m through a preferred stock to undisclosed investors that were described by ViaCyte as a not-for-profit corporation and several individuals.
ViaCyte raised $10.6m in 2013 through a stock sale to Johnson & Johnson Development Corporation (JJDC), the corporate venturing arm of Johnson & Johnson, Asset Management Company and Sanderling Ventures.
The company, known as Novocell until 2010, had previously raised over $80m in funding from JJDC, Asset Management, Pacific Horizon Ventures, Sanderling Ventures, Vertical Group, DFJ Portage Ventures, BD Ventures and Headland Ventures.