Covagen has announced that the company has secured CHF42m in a tranched Series B financing with an option to obtain an additional CHF14m that would increase the total amount of the financing round to CHF56m.
This financing will mainly support the clinical development of Covagen's lead FynomAb COVA322, the first clinical candidate generated using Covagen's proprietary FynomAb platform technology.
This bispecific TNF/IL-17A inhibitor for the treatment of rheumatoid arthritis, psoriatic arthritis and other inflammatory diseases has a novel mechanism of action not accessible with monoclonal antibodies. COVA322 is expected to enter clinical trials in early 2014.
In addition, the proceeds from the Series B financing will further advance Covagen's diverse discovery programs in oncology. Current research is focused on the generation of bi- and trispecific FynomAb drug candidates with tailored architectures and novel modes-of-action in the fields of CD3 therapeutics, immunomodulation and bispecific antibody-drug conjugates (ADCs).
The financing is led by new investor Gimv with CHF8.3m and includes the participation of new investor Ascent Biomedical Ventures and existing investors Novartis Venture Fund, Edmond de Rothschild Investment Partners, Seroba Kernel Life Sciences, Ventech and MP Healthcare Venture Management.
In conjunction with the financing, Dr Karl Naegler, Partner Health & Care at Gimv, and Dr Avi Kometz, partner at Ascent Biomedical Ventures, have joined the board of directors.
Covagen CEO Dr Julian Bertschinger noted securing this major investment demonstrates the enthusiasm of the company's investors and their confidence in its FynomAb platform.
"This financing will allow us to advance our lead product, COVA322, through proof-of-concept studies and support our collaborative relationships. We also would like to welcome Karl and Avi to our board of directors," Dr Bertschinger added.
Previously, the company had raised a total of CHF14m.
