Press release
Uppsala, June 29, 2007
OxThera Raises SEK 150 Million in New Round of Financing
A consortium of investors has agreed to invest SEK 150 million in OxThera AB in a new round of financing. Existing investors HealthCap, Scandinavian Life Science Venture and
Q-Med AB are joined by Industrifonden and a private investor. The capital will primarily be used to finance the company's pivotal clinical trials with Oxabact™, as well as clinical trials with Oxazyme™.
Oxabact™ will shortly enter pivotal clinical trials for the treatment of primary hyperoxaluria and OxThera plans for a launch of Oxabact™ in 2009. Primary hyperoxaluria is a rare genetic disease which causes the liver to produce excess amounts of oxalate. The disease normally results in kidney stones and/or calcification of the kidneys, eventually leading to renal injury, failure and death. Oxabact™ has been granted an orphan drug designation by the EMEA and by the FDA. OxThera estimates that there are at least 2,000 patients with primary hyperoxaluria in the US and EU combined.
Oxazyme™ is an orally delivered formulation of a recombinant enzyme which is being developed for the prevention of recurrent kidney stones. It is designed as a dietary intercept therapeutic for secondary hyperoxaluria (excessive absorption of dietary oxalate) causing recurrent kidney stone disease. This is common in patients with excessive absorption of dietary oxalate and in patients with, fat malabsorption due to underlying enteric diseases such as IBD , cystic fibrosis, or as a result of jejunoileal bypass surgery or bariatric surgery. OxThera plans to initiate phase I studies with Oxazyme™ in late 2007. OxThera estimates that the target patient population for Oxazyme™ corresponds to about six million people in the US and EU combined.
Bengt Ågerup, chairman of OxThera: "We have been very pleased with the high level of interest in this round of financing and welcome the new investors to take part in the exciting development of two innovative therapies, addressing important but often forgotten diseases."
HealthCap and Scandinavian Life Science Venture have been engaged in OxThera since 2005, while Industrifonden is a new investor: "OxThera's two promising projects for the treatment of hyperoxaluria/kidney stone disease have potential to turn the company into a leading player within the Swedish biotech community", says Jonas Brambeck, Investment Manager with Industrifonden.
Jon Heimer, CEO of OxThera comments: "We are very much looking forward to initiating pivotal trials with Oxabact™. There is a great unmet medical need for the treatment of primary hyperoxaluria, a terrible disease affecting children with a life expectancy of only 20 years after diagnosis. Oxazyme™ will soon enter the clinic in order to be tested in humans, and we hope to be able to develop a preventive treatment for secondary hyperoxaluria, a growing problem not least due to the increased number of bariatric surgeries."
Hjalmarsson & Gunterberg Corporate Finance AB has acted as financial advisers to OxThera in relation to this financing.