Pittsburgh-based Noveome Biotherapeutics, a clinical-stage biopharmaceutical company, recently completed the first closing of a $40 million Series E financing aimed at tackling a rare pediatric disease.
The company will use the funding to advance a pipeline of next-generation biologics and support clinical trials of ST266 in Necrotizing Enterocolitis (NEC), which is caused by inflammation of the intestines. The disease is found primarily in premature and very low birth weight babies, affecting 4,000 to 6,000 annually with a mortality rate of 30 percent.
“NEC is a devastating disease that affects the most vulnerable among us,” Patrick Welch, Noveome CEO, said.
ST266 is a biologic solution that has completed a Phase 1 open-label clinical trial. Pre-clinical results suggest ST266 may both prevent and treat NEC.
There is currently no Food and Drug Administration approved treatment for NEC.
The company said the first tranche closing totaled $20.7 million of a total $40.2 million Series E Financing. MAK Capital led the financing along with additional investment from existing investors. The Series E financing is expected to be completed by Dec. 31.
“We are excited to join Noveome and support the broad therapeutic potential of ST266 to deliver novel treatments to patients suffering from a wide variety of complex diseases,” added Michael Kaufman, CEO of MAK Capital. “We are motivated by the prospect of providing the first major improvement in lifesaving therapy for infants affected by NEC in over 30 years.”
Noveome previously raised $170 million from private investors, the U.S. Department of Defense, the state and Allegheny County.
“We are encouraged by the support from both MAK and existing investors in this Series E financing, providing Noveome with the necessary funding to progress our clinical stage NEC program,” Welch said.