NanoBio adds another $10 million to fund company through 2011

ANN ARBOR, Michigan — NanoBio has landed an additional $10 million investment that brings the Michigan biopharmaceutical company closer to its first licensing deal and an over-the-counter product.

John Coffey, NanoBio’s vice president for business development, said “we have three of the most significant global pharmaceutical companies in negotiations and they are seriously interested,” though declined further comment. Company Chief Executive James Baker told FierceBiotech a deal could be done in the next few months.

NanoBio’s expects its topical ointment for herpes labialis (cold sores and fever blisters) to be its first over-the-counter product. Coffey pointed to a Phase II trial that showed its product was as good as the most effective treatments on the market. He said the company hasn’t developed a price nor a product name.

This money closes NanoBio’s Series B round at $22 million, which includes a $12 million investment from February. Previous investor Perseus, the company’s majority shareholder, and Venture Investors lead this most recent investment.

The money will also fund NanoBio’s operations into 2011, the company stated. The latest funding will also pay for the start of a Phase 1 clinical study in acne and a Phase III study on its herpes labialis treatment, and support an ongoing trials of an influenza vaccine that is delivered via a nasal dropper.

The company is essentialy on target for a path Perseus executives articulated as early as mid-2008. At the point, Perseus hadn’t spent much time promoting NanoBio but had expected to start that process — and find the company a partners among the big pharmaceutical companies — after additional studies were in and it provided NanoBio additional cash.