Start-up Novagali Pharma SA, a privately-held biopharmaceutical company that develops novel ophthalmic products announced last week it had secured €26 million in a new financing round involving participation of new and existing investors.
With this new funding, the total capital raised by Novagali since its inception equals €44 million.
AGF Private Equity and Bernard Chauvin joined the group of Novagali Pharma's investors: 1.2.3. Multinova, Auriga Partners, CDC Entreprises Innovation, Credit Agricole Private Equity, Edmond de Rothschild Investment Partners, FCJE managed by CDC Entreprises - FP Gestion and Siparex Ventures.
Novagali Pharma president and CEO Jerome Martinez said that the series C financing round will be used to pursue high potential projects, some of which might be commercially available by the end of 2007.
Novagali Pharma has a patented technology platform called Novasorb, The company was founded in 2000 by Professor Simon Benita of the Hebrew University of Jerusalem, where the initial technology was invented. A first round of financing allowed the transfer of Novasorb technology from Israel to France and the development of proven applications.
Novasorb's drug delivery technology consists of a patented cationic submicron emulsion technology that improves the bioavailability and absorption of drugs while increasing safety and clinical efficacy.
Novagali’s original business and development focus was on improved drug targeting and delivery. The company started in oncology, launching a development program for an oral dosage form of paclitaxel.
While preparing its second financing round, Novagali Pharma restructured its business plan from drug delivery to a combination of development activities in ophthalmology. The company now has a significant pipeline of various products at final stages of development.
For the treatment of dry eye, Novagali Pharma is preparing the registration in Europe and USA of Cationorm (Nova23006/33). In parallel, Nova22007, a cyclosporine A cationic emulsion, is in phase III clinical study and Nova21027 will enter into phase II clinical trial for treatment of glaucoma.
This new fund raising allows Novagali Pharma to finance clinical trials, speed up other development projects such as Eyeject, a novel technology for intra and peri-ocular delivery of drugs, and research programs which include treatment of retinopathies.
The company stated that the proceeds provided it with the flexibility to adapt its structure in anticipation of eventual product commercialization by itself or with a partner.
Published by Globes [online], Israel business news - www.globes.co.il - on April 16, 2006
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