Pharma, Startups

Biotechnology company adds new investor in its fight against Hepatitis B virus

A biotechnology company seeking to eradicate the Hepatitis B virus has added a new investor […]

A biotechnology company seeking to eradicate the Hepatitis B virus has added a new investor to its backers to close a $25 million Series A round.

Novira Therapeutics in Radnor, Pennsylvania added Versant Ventures — a venture firm that backs early stage life science companies, according to a company statement.  Versant will invest $7.5 million in Novira as part of the deal. The investment follows an initial close of the Series A round in August last year.

Novira is developing capsid inhibitors that attack the shell protecting the virus’ genetic material. It is also developing other Hepatitis B treatments. It is expecting to start clinical trials in 2014.

In an e-mail to clarify the financing, Chief Scientific Officer and President Osvaldo Flores said the financing round followed a two-step closing model in which investors 5AM and Canaan led the first closing in August with a partial syndicate. That was followed by a second closing announced after Versant agreed to be part of the syndicate. Flores added that the financing round was increased to $25 million from $23 million because the slot for the third venture group was increased to match that of the lead investors. The $25 million amount also takes into account the participation of seed investors in the round.

Newborns, young children and immunocompromised patients frequently become chronically infected with Hepatitis B. About 400 million people worldwide suffer from chronic HBV infection. Up to 25 percent with chronic cases of Hepatitis B die from carcinoma or liver cancer, according to the Centers for Disease Control.  Vaccinations for infants and non-vaccinated children under 18 is the most common way to prevent transmission. The most common ways the virus is transmitted are through unprotected sex and blood transfusions. About 600,000 people die each year from the virus, according to the World Health Organization.

In an interview last August Flores told MedCity News: ““We believe our drug either alone or in combination with others has the potential to lead to better cure rates” than the treatments that are currently available.

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