Funds to be used to continue the clinical development of sevuparin for sickle cell disease
Modus Therapeutics AB, a company developing innovative treatments in high unmet medical need disease areas with a focus on sickle cell disease (SCD), announces that it has raised SEK 140 million in a financing led by new investor HealthCap. HealthCap is a European venture capital firm with a focus on investments in breakthrough therapies of diseases with highly unmet medical needs.
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.
Ellen K Donnelly, PhD, CEO of Modus Therapeutics, said: “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.”
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 Partner Mårten Steen said: “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.”