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Proteon Therapeutics raises USD38m as Novartis signs acquisition option

Massachusetts-based Proteon Therapeutics, which is developing a product for kidney patients, has completed a USD38m Series B equity financing, led by MPM Capital on behalf of the MPM Bi

Massachusetts-based Proteon Therapeutics, which is developing a product for kidney patients, has completed a USD38m Series B equity financing, led by MPM Capital on behalf of the MPM Bio IV NVS Strategic Fund.

The announcement follows the initiation of a Phase 1/2 human clinical study of its lead product, PRT-201, in patients with end stage renal disease undergoing surgery for arteriovenous fistula creation.

Proteon has also bolstered its cash reserves by granting Novartis an exclusive option to acquire the company following the successful completion of a Phase 2 clinical study of PRT-201 with a potential secondary right to a global license under pre-agreed conditions. Including the initial acquisition payment plus potential additional regulatory milestone payments, the deal with Novartis could exceed USD550m.

The Series B financing includes new investors, the MPM Bio IV NVS Strategic Fund and the Vectis Healthcare & Life Sciences Fund, along with existing investors TVM Capital, Skyline Ventures, Prism VentureWorks, Intersouth Partners and several of Proteon’s original angel investors.

Concurrent with the investment, Proteon also announced the addition of Dr. Steven St. Peter, managing director of MPM Capital, to the Proteon Therapeutics Board of Directors.

‘Patients with kidney failure endure great suffering and frequent hospitalization due to vascular access complications. If successful, PRT-201 may improve medical outcomes and lower the associated cost of care,’ says Timothy P. Noyes, president and chief executive of Proteon.

‘We greatly appreciate the continued support of our existing venture and angel investors, and we are excited to welcome MPM and Vectis as new investors.’

The combination of the Novartis option agreement and the closing of the Series B financing will allow Proteon to develop PRT-201 through Phase 2.

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