Berkeley, California-based biopharmaceutical company Aerovance has secured USD38m in additional equity financing from private equity investors led by ProQuest Investments.
Berkeley, California-based biopharmaceutical company Aerovance has secured USD38m in additional equity financing from private equity investors led by ProQuest Investments.
In previous transactions since formation in 2004, the company has raised USD92m in equity financing and USD10m in debt financing.
This financing round, which consists of two tranches, included the full pro rata participation of existing investors Apax Partners, Clarus Ventures, Alta Partners, Lehman Brothers, NGN Capital and Burrill, as well as of new investor BB Biotech Ventures.
Aerovance closed on USD20m and has the right to call the remaining USD18m after six months.
The financing will support the company’s recently initiated Phase IIb clinical trial of inhaled Aerovant in patients with uncontrolled asthma and Phase III enabling activities for this programme. These activities will include scale-up of the dry powder spray-drying process and preparation for a long-term toxicology study.
In connection with the financing, Alain Schreiber, a partner with ProQuest Investments, will join Aerovance’s board of directors. Ann Hanham, a managing director with Burrill and an original investor in Aerovance, will also join the company’s board of directors. Hingge Hsu, a former partner with Lehman Brothers, will step down from his role as a board member.
‘Our investment in Aerovance is in line with ProQuest’s strategy of targeting companies with breakthrough technology and products, proven management, large market potential and achievable business strategies,’ says Schreiber.
Mark Perry, Aerovance’s president and chief executive, says: ‘This significant capital raise at a time of great challenge and uncertainty in the financial markets is an important indication of investor enthusiasm for our lead candidate, Aerovant. We are pleased to advance Aerovant into the Phase IIb study, AeroTrial, to evaluate the compound’s safety and efficacy in patients living with uncontrolled asthma.
‘We welcome both Alain Schreiber and Ann Hanham to our board of directors. They have extensive drug development and commercialization expertise that complement the experience of our existing board members and senior management team. On behalf of our board, I would like to thank Hingge Hsu for his numerous contributions and valuable guidance since Aerovance’s formation.’
