7.29.09 | Chris Seper

Cardiovascular biopharma Akebia takes additional funding to develop 2 drugs

CINCINNATI, Ohio — Cardiovascular drugmaker Akebia Therapeutics will add $10 million more than expected to its Series A fund-raise, bringing the total to $25 million, the company stated (pdf).

The company stated it raised additional money to ensure the development of two of its drugs. Akebia plans later this year to start Phase I clinical trials on an oral medication designed to create new red blood cells in anemia patients. In addition, it wants to establish a human clinical proof of concept for a second drug that prevents vascular leak syndrome, in which blood components leak out of veins and into other systems — a side effect of some cancer treatments.

Akebia said in December it had raised $15.1 million from investors. It had received $9 million of the funds and was due another $6 million after it reached certain benchmarks. However, Akebia said investors expanded that arrangement. So instead of $6 million, the company is now pledged $16 million more.

Akebia will receive $12 million now instead of the original $6 million, and get the final $4 million if it reaches additional goals.

Novartis Bioventures and Venture Investors co-led the expansion financing. Existing investors Triathlon Medical Ventures, Kearny Venture Partners, Athenian Venture Partners and Sigvion Capital also participated.

The additional funding follows the company’s decision late last month to hire Ian Howes as its new chief financial officer and vice president of corporate development to expand drug development at the company.

Chris Seper MedCity News

Chris Seper is the CEO at MedCity Media, which publishes MedCityNews.com. He is also a senior writer at MedCity News. Reach him at chris@medcitynews.com.

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Tags: Akebia, Athenian Venture Partners, Cincinnati, dealflow, Kearny Venture Partners, Novartis, Ohio, Sigvion Capital, Triathlon Medical Ventures, Venture Investors

Comments Post a comment

[...] Systems closed on $1.2 million in funding, Cincinnati’s Akebia announced it’s raised more than expected, and Cleveland’s Otosonics is raising cash to develop a diagnostic tool to find infected [...]

Comment by The guts to go it alone because of biotech — MedCity weekend rounds : MedCity News — August 1, 2009 @ 11:24 am

[...] heavyweight talent to some significant fund-raising by Akebia.Â Last month it announced a total $25 million Series A equity round — $10 million more than expected — ahead of Phase I clinical trials on an oral [...]

Comment by Akebia adds Dr. Victor Dzau, Duke health CEO, to board of directors : MedCity News — September 2, 2009 @ 10:15 pm

[...] company is fully funded to complete this Phase I trial and do additional studies. It could in about a year’s time [...]

Comment by Cincinnati’s Akebia begins Phase I human study on anemia drug : MedCity News — September 15, 2009 @ 4:28 pm

[...] five months for Akebia. The company added a new chief financial officer in May and then said it had raised $25 million — $10 million beyond what it had announced earlier. Last month, it added a new board member [...]

Comment by Cincinnati’s Akebia Therapeutics races (as safely as possible) toward new anemia treatment : MedCity News — October 13, 2009 @ 9:47 am

[...] of the additional $10 million Akebia raised in July was meant to speed the development of this drug. Howes said Akebia may [...]

Comment by Akebia Therapeutics’ second act: Coming in 2012 : MedCity News — October 14, 2009 @ 2:16 pm

[...] Ohio, the biggest deals were: Akebia Therapeutics, the Cincinnati developer of small-molecule drugs for anemia and vascular disorders, which raised [...]

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