The company announces that it has raised SEK 140 million in a financing led by new investor HealthCap, a European venture capital firm.
HealthCap will invest SEK 60 million in a series A preferred financing. At the same time, existing shareholders will convert outstanding convertible notes into shares. The new equity investment together with the conversion, amounts to over SEK 140 million.
“We welcome the support of HealthCap, a high-profile life science investor, alongside the continuing commitment of our existing shareholders. The funds that we have raised will allow us to complete our current Phase II trial with sevuparin in patients with SCD and commence a new program focused on a subcutaneous formulation,” said Ellen K Donnelly, PhD, CEO of Modus Therapeutics.
An important treatment for SCD patients
Modus’s lead candidate drug sevuparin is an innovative, proprietary polysaccharide drug with anti-adhesive, anti-aggregate and anti-inflammatory effects due to its multimodal mechanism of action. Currently being evaluated in a Phase II clinical study, sevuparin has the potential to restore blood flow and prevent further microvascular obstructions in children and adults with SCD.
“HealthCap sees ample opportunities for Modus Therapeutics’ orphan drug candidate sevuparin to be an important treatment for SCD patients. We look forward to the next important step in the company’s development, which is the completion of the ongoing Phase II study and prepare for pivotal studies,” said HealthCap Partner Mårten Steen.