Neurotech raises Euro 35 million in France's largest biotech private funding this year
Neurotech S.A., a specialist in the discovery, development and commercialization of cell-based therapies in the eye and the central nervous system (CNS), recently announces that it has raised Euro 35 million in a pre-IPO funding round. The additional funds will allow Neurotech to progress several key projects towards clinical trials.
Joint lead investors in this round of funding were Apax Partners and Merlin Biosciences. Other new investors are Westdeutsche Landesbank Girozentrale, ABN Amro, Rothschild, and AGF Innovation. Existing investors (3i Plc, GIMV, Atlas Ventures, CDC Innovation, Sofinnova, Sudinnova, Banque de Vizille, Banexi, Private Equity Holdings and IMH) also participated.
"To achieve this level of funding in the current climate is a clear endorsement of Neurotech's technology and business strategy," said Dr Tom Shepherd, CEO of Neurotech. "It illustrates an increasing trend for European companies to raise more significant amounts of capital as they move into clinical trials instead of relying on drip-feed financing. We are delighted to have the support of such a range of quality investors in the biopharmaceutical field."
The eye and central nervous system have large areas of unmet medical need. This is due not only to the complexity of the diseases, but also to the presence of the blood-eye and blood-brain barriers, which limit local access of orally or systemically applied molecules. Medicaments can be injected directly into the brain or eye, but this is an impractical approach if regular administration is required. It is primarily for this reason that protein therapeutics have never been developed in the eye. Cell therapy, either encapsulated or naked, allows the continuous local production and release of therapeutic molecules from living cells following a single administration. In addition the eye is an optimal site for cell therapy because it is easily accessible, can be visualised directly, and consists of a localised space with a small internal volume.
Neurotech's core technology uses genetically modified eye and CNS derived cell lines, either encapsulated as a means of locally delivering proteins over long periods of time, or as a cell therapy to replace damaged cells. The company has a strong portfolio of cell-based therapies in development to treat CNS and eye diseases. Neurotech's research success has been built up on solid collaborations and alliances with leading academic institutions such as the Institute of Ophthalmology in London, the Kennedy Krieger Institute in Baltimore, and the Foundation Fighting Blindness.
The company has recently successfully concluded pre-clinical trials in the field of Retinitis Pigmentosa and Age-related Macular Degeneration. The Euro 35 million will allow Neurotech to complete a number of agreements to bring new technologies into the company and to commence additional clinical trials in three main areas:
- Retinitis Pigmentosa
- Age-related Macular Degeneration, the main cause of blindness in adults
- neovascular diseases of the eye
"Neurotech, which I have been watching since its start up, has made highly significant progress, especially when it acquired the encapsulated cell technology (ECT), and when it broadened its focus to eye diseases, where there are clearly unsatisfied needs and huge market potential," said Dr Laurent Ganem, General Partner of Apax Partners, who will become a board member of Neurotech. "With this substantial financing, we are very pleased to support Tom and his team in the further development of the company."
About Apax Partners
Apax Partners is one of the world's leading private equity investment groups with Euro 12 billion under management and with 160 investment professionals operating in ten countries across the world. Healthcare is one of its five chosen global growth sectors. Apax Partners Funds' investments include NicOx (F) - Synt:em (F) - Hybrigenics (F) - IDM (F) - Entomed (F) - Versicor (USA) - Lexicon (USA) - Ribotargets (UK) - Microscience (UK) - Wilex (Ger) - Metagen (Ger) - D-Pharm (Isr). For more information, please visit www.apax.com .
About Merlin Biosciences
Merlin Biosciences is a broad-based venture capital and advisory company dedicated to the life sciences sector. Merlin Biosciences has one of the largest, most experienced biotech investment teams in Europe and is currently advising funds amounting to over Euro 400 million. Merlin supports companies in all stages of their development - from early stage, through pre-IPO and post-flotation and has an extensive network of advisers and experienced strategic partners. Merlin Biosciences advises three funds which encompass this spectrum of development: The Merlin Biosciences Fund, Finsbury Life Sciences Investment Trust, and The Merlin Fund. Merlin Biosciences is regulated by IMRO. For more information, please visit: www.merlin-biosciences.com
About Neurotech:
Neurotech S.A. is a French based biotechnology company developing cell therapy and protein delivery products in the eye and brain. Neurotech's Encapsulated Cell Technology (ECT) allows, for the first time, the long term administration of protein drugs in the eye and CNS. In addition to the ECT, Neurotech has a portfolio of cell therapy products in development to treat CNS and eye disease, one of which is in Phase I/II studies in France. Neurotech has R&D operations in France and the United States and is supported by an international group of investors including: Merlin Biosciences, Apax Partners, 3i Plc, Atlas Venture, Westdeutsche Landesbank Girozentrale, GIMV, CDC-Innovation, Sofinnova, ABN Amro, AGF Innovation, Rothschild, Banexi, IMH, Private Equity Holdings, Sudinnova, and Banque de Vizille.
Source: Neurotech S.A.
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