Arix Bioscience has led an oversubscribed $30 million Series F financing round for a clinical biotechnology company Atox Bio.
Atox Bio is a late stage clinical biotechnology company developing immune modulators for patients with severe infections including necrotising soft tissue infections (NSTI) and acute kidney injury (AKI).
The $30 million fundraising included new investors Adams Street Partners, Asahi Kasei Corporation and additional undisclosed investors, alongside existing investors SR One, OrbiMed, Lundbeckfonden Ventures, Becker and Integra Holdings.
Arix Bioscience is investing $8 million for an equity stake in Atox Bio. As part of the financing, Arix Bioscience’s Jonathan Tobin will join Atox Bio’s Board of Directors.
Atox Bio’s Reltecimod, is a novel peptide that modulates the body’s immune response, lowering the risk of potential morbidities and mortality. Reltecimod got Orphan Drug status from the FDA and EMA as well as Fast Track designation. Atox Bio is conducting a Phase 3 clinical study of Reltecimod for patients with NSTIs, and will start a Phase 2 clinical study for AKIs in 2018.
Joe Anderson, Chief Executive Officer of Arix Bioscience, pointed out that Atox Bio is developing therapies for severe, potentially life-threatening conditions in the critical care setting where no other therapies exist. “Necrotising soft tissue infections and acute kidney injury are major unmet medical needs, and we look forward to supporting the company to develop treatments that would be potentially life-changing for patients,” he said..
This deal represent a meeting of its goal set out at to have 12 Arix Group Businesses by the end of 2017. The CEO added: “Over the coming months, our Group Businesses will reach multiple, potentially significant milestones which, if successful, will support the further development of breakthrough innovation for patients and value for shareholders.”
Dan Teleman, Chief Executive Officer of Atox Bio, said: “We are excited to welcome such high quality investors into the existing strong syndicate. The success of this round reflects the significant achievements we have made to date in the development of Reltecimod and recognition of the critical unmet medical need for treatments for NSTI and AKI.”