Israeli startup Chiasma in the midst of a hefty fundraise: It’s raised $33.8 million of a proposed $56.3 million round, according to regulatory filings. This comes as a timely vote of confidence – the company was expecting a $595 million deal that fell through over the summer.
Chiasma’s lead product, oral octreotide, is being developed to treat acromegaly – a disorder that stems from an excess of growth hormones.
It’s square in the orphan category: There are about 5,000 cases per million in the population.
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Roche initially held a $595 million commercialization deal with Chiasma, but cancelled it this August, according to Israeli business publication Globes. It writes:
In a conference call, Roche explained that in view of its 1st half results, reported on July 27, while the product had achieved good clinical results in its Phase III trials, it had nevertheless chosen to cancel the agreement “after receiving additional information about the trial, and after further consultation with the regulatory authorities.”
According to Chiasma CEO Roni Mamluk, “The results of the Phase III trials were excellent, and a celebratory event was held in June to publicize them, attended by all Roche’s senior executives, who were all happy and satisfied. We were with them in all their meetings with the regulators, and we have before us all the results of the trials we conducted ourselves under their supervision. There is no problem with the results; what is apparently involved is a strategic decision by them whether or not to become more deeply involved in the endocrinology sector (hormone-based drugs).”
Current investors in the company include MPM Capital, Abingworth, 7-Med Health Ventures LP, ARCH Venture Partners and F2 and F3 Ventures.
