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DOWJONES
VENTUREWIRE– OCTOBER 5, 2007
Specialty Drug
Co. APT Pharma Breathes In $22M
APT Pharmaceuticals Inc., a company specializing in treatments
for underserved pulmonary markets, has raised $22 million
in Series A-2 financing.
New investors Great Point Partners and Versant Ventures led
the round, joined by existing investors Charter Life Sciences
and Vivo Ventures.
Stephen Dilly, president and chief executive of APT, declined
to say if the terms and valuation were the same as the earlier
A round. "It's a continuation
of the A in large part," he said.
In March 2006, APT received a $3 million commitment, closing
its Series A with $9 million pledged from Charter, Vivo and
Research Corp. Technologies. Dilly said the company ultimately
only drew down $8 million of the round.
Based in Burlingame, Calif., APT is a specialty drug developer,
looking to reformulate existing compounds to treat underserved
conditions, particularly in the lungs. The company's lead
compound, Pulminiq, is an inhalable form of cyclosporine
that has completed Phase II trials for lung transplant rejection.
"Lung transplant patients survive on average 4 1/2 years," said
Dilly, "as opposed to kidney or heart transplants, which
are more like 10 years."
Other research projects, which are in preclinical, are looking
at other respiratory conditions, including bronchiolitis,
emphysema and fibroid conditions, as well as other programs,
such as a cardioprotectant therapy.
Camille Samuels, managing director at Versant, said one of
the company's main appeals is its targeting of underserved
diseases. "With unmet needs,
there's not a lot of competition, there's an easier regulatory
pathway and there are fewer competitive hurdles," she
said. Another appeal is the small marketing team needed,
given the small number of facilities treating lung transplant
patients. She estimated the projected sales force at eight.
Samuels compared APT to an earlier Versant investment: NovaCardia
Inc., another reformulation company, which filed to go public
earlier this year but was ultimately acquired by Merck & Co.
last month for $366.4 million. She said APT could replicate
that company's exit, or she thinks it could be a viable IPO
candidate ultimately in its own right. "The
neat thing about this one is they
could take it all the way," she said.
In the meantime, Dilly said the company needs to reach certain
milestones before it receives a major jump in its valuation. "We
believe there is a significant valuation inflection in getting
to Phase III and we would like to bring some other products
to the clinic," he said. The Series A-2 money should
last the company 18 months, he said.
As a result of the financing, Samuels and David Kroin, managing
director at Great Point, have joined the board of APT.
APT has seven employees.
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