Milan, Italy, April 24th, 2018 – EryDel, an Italian biotechnology company, specializing in the administration of drugs carried by the patient's red blood cells and developing an innovative red-blood-cell-based drug delivery device for the treatment of rare neurodegenerative diseases, announced yesterday a €26.5M financing round led by Sofinnova Partners with the participation of current shareholders Genextra spa and Innogest SGR. In conjunction with the financing, Sofinnova Partners' Managing Partner Graziano Seghezzi, has joined EryDel's Board of Directors.
The company is led by founder and CEO Luca Benatti, a serial entrepreuer who previously co-founded Newron Pharmaceuticals. Based in Milan, Erydel has developed an innovative drug delivery device based on red blood cells for the treatment of rare neurodegenerative diseases. The proprietary technology is based on the encapsulation of drugs in red blood cells taken from the patient's blood, which are then re-injected into the subject. The lead product, EryDex, has received Orphan Drug designation both from the FDA and the EMA for the treatment of Ataxia Telangiectasia (AT), a rare autosomal recessive disorder for which there is currently no established therapy.
EryDel will use the funds to accelerate its international development and complete the ATTEST, a single pivotal Phase 3 clinical trial of its lead product EryDex for treatment of rare neurological symptoms of Ataxia Telangiectasia (AT), a rare autosomal recessive disorder for which no established theraby is currently available. ATTEST is currently being enrolled in Europe, Asia, Australia and the United States.
In January 2016 EryDel raised €6M from the European Horizon 2020 research program, while in May 2015 it announced the €29.5M increase in the Series B investment round started in 2013, when it announced the achievement of €15M (see here the press release). In the 2013 round he was led by Genextra, who had invested for the first time alongside the first hour investors, that is Innogest sgr and Focus Gestioni sgr (see here the press release). Innogest SGR, with the fund Innogest Capital, and Focus Gestioni SGR (which was headed by Banca Marche), with the fund Focus Impresa, had invested for the first time in EryDel in 2008.
Erydel develops an innovative red-blood-cell-based drug delivery device for the treatment of rare neurodegenerative diseases. Its proprietary technology relies upon the encapsulation of drugs into red cells taken from the patient’s own blood which are then re-infused into the patient. EryDel’s lead product, EryDex, has received Orphan Drug designation both from the FDA and the EMA for the treatment of Ataxia Telangiectasia (AT), a rare autosomal recessive disorder for which there is currently no established therapy. Next to AT, EryDel’s technology is being developed in a wide range of additional applications.
"AT is a devastating genetic neurological condition with no therapy available yet. EryDel’s technology is offering an opportunity to bringing to the market a valid option for patients suffering from the disease. We are delighted to have attracted, a world-class investor, to support key steps for regulatory approval of EryDex and to leverage potential of EryDel’s drug delivery platform”, said Luca Benatti, CEO of EryDel.
Graziano Seghezzi, Managing Partner at Sofinnova Partners, adds: “We have known Luca Benatti, a serial entrepreneur who previously founded Newron Pharmaceuticals (NWRN), for almost two decades and followed EryDel’s development since the beginning. We believe the company is now poised for rapid growth and are happy to actively contribute to this exciting development”
About Ataxia Telangiectasia
Ataxia Telangiectasia (AT) is a rare genetic disease caused by biallelic mutations in the ataxia telangiectasia mutated (ATM) gene, for which no established therapy is currently available. ATM encodes a PI3Kinase protein shown to play a pivotal role in response to DNA damage and cell cycle control. Homozygosity for ATM mutations result in a multi-systemic disorder, mainly involving the nervous and immune systems. The major clinical feature of AT is severe progressive neurodegeneration from early infancy. Specific features include progressive ataxia of the trunk and limbs, involuntary movements, oculomotor apraxia, difficulties with speech and swallowing, and delayed peripheral neuropathy. Other clinical features of patients with the classical phenotype include oculocutaneous telangiectasia, immunodeficiency with recurrent respiratory tract infections, radiosensitivity and an increased incidence of cancer.
About EryDel
Based in Milan, Italy, EryDel SpA is a biotechnology company specialized in the development of drugs delivered through red blood cells (RBCs) by using a proprietary medical device technology. Its most advanced product, EryDex System (EDS) is under late stage development for the treatment of Ataxia Telangiectasia, a rare autosomal recessive disorder for which no established therapy is currently available.
EryDex has received Orphan Drug designation for the treatment of AT both from the FDA and the EMA. A completed pilot Phase II trial in AT patients demonstrated statistically significant efficacy of EDS on both the primary and secondary efficacy measures. An international multi-center, Phase III pivotal study, ATTeST, is being conducted. EryDel has a pipeline of preclinical programs that use its proprietary RBC’s delivery technology for the treatment of other rare diseases.
About Sofinnova Partners
Sofinnova Partners is a leading European venture capital firm specialized in Life Sciences. Based in Paris, France, the firm brings together a team of professionals from all over Europe, the US and China. The firm focuses on paradigm shifting technologies alongside visionary entrepreneurs. Sofinnova Partners seeks to invest as a lead or cornerstone investor in seed, start-ups, corporate spin-offs and late stage companies. It has backed nearly 500 companies over more than 45 years, creating market leaders around the globe. Today, Sofinnova Partners has over €1.9 billion under management. For more information: www.sofinnova.fr
Identify the most innovative projects in the field of biotech and turn them into real companies. This is the objective of BiovelocITA, the first accelerator dedicated to biotech companies Made in Italy launched by Sofinnova Partners, a European venture capital firm specialized in Life Sciences. The idea is to bring together scientists, entrepreneurs and investors to promote the emergence and development of new innovative biotech companies. Even so, by deeply examining the startups' world, the biotech sector is very late. At least in terms of numbers. And an accelerator with a solid foundation can only do well.
Co-founded by Silvano Spinelli (Chairman) and Gabriella Camboni (CEO), the goal of BiovelocITA is that to accelerate the feasibility study (proof of concept) of the most promising research projects and turn them into biotech companies. Silvano Spinelli founded in 2006 EOS, Ethical oncology science, a pharmaceutical company that it sold in 2013 - one of the richest Italian exits of recent years - to the US company Clovis Oncology for €357.4M. At the center of the business there was lucitanib, an anti-cancer molecule which inhibits the kinase, one of the key enzymes for the replication of cells. It is producing excellent results in human clinical trials against breast cancer and in 2018 it could become an approved and marketed drug. In 2014 it won the Wired Innovation Award as most innovative startup.
Now, along with Gabriella Camboni, also in Eos and even before, always with Spinelli, in Novuspharma, which in 2004 merged with Seattle, US-based, Cell Therapeutics with the subsequent listing on the Milan Stock Exchange, he wants to broaden the scope of the Italian biotech. Indeed, setting up a hub that allows "to bridge the gap that exists, in Italy, between good science and little application" . That's why they are launching an accelerator - not an incubator - to bring together scientists, entrepreneurs and investors (for now, private side, it's rich industrial) to promote the emergence and development of new innovative biotech companies.
The accelerator has already signed the first strategic partnership with TTFactor, technology transfer company that manages the intellectual property portfolio of three of the most important Italian research institutes: the European Institute of Oncology (IEO), the FIRC Institute for Molecular Oncology (IFOM) and the Monzino Cardiology Center. These last two are IRCCS, which stands for "Istituto Di Ricovero e Cura a Carattere Scientifico" (Italian Research Hospital), i.e. Institutes of hospitalization and health care science.
And already more than ten biotech projects are currently being studied coming from both the agreement with TTFactor and from other sources.
Parallel to the academic partnerships, the accelerator has started a fundraising campaign that has already ensured a financial availability of €6M (payable over the next few years of operations) funds raised from Sofinnova Partners and partly by a small group of private investors, introduced by Banor SIM S.p.A.
"We are facing a unique opportunity - said Graziano Seghezzi, Partner at Sofinnova Partners - the scientific level in the country is excellent and the number of biotech entrepreneurs is growing. BiovelocITA is able to exploit the moment, by integrating the three key players that characterize a solid biotech market: scientists of excellence, experienced managers and investors in the sector." The President of the accelerator, Silvano Spinelli, meanwhile, said that "Gabriella and I are pleased to return to work as a team with Sofinnova Partners. Together we have created and developed EOS and Novuspharma, two successful companies in the biotech sector. Thanks to BiovelocITA we will replicate the same experience, namely to transform a promising research project in a successful biotech company, but this time on a large scale. Ethical Oncology Science (EOS) is part of the history of Italian startups: one of the main successful exits of Italy.
BiovelocITA
BioVelocITA srl It is the first Italian accelerator dedicated to biotech companies. It was founded by Sofinnova Partners, venture capital market leader specializing in the biosciences that, in 40 years, has funded and supported nearly 500 companies. Thank to BiovelocITA entrepreneurs, scientists and investors can work together to accelerate biotech projects of international scope and reach the "proof of concept" that precedes the clinical phase. Born to provide innovative solutions to the medical community and patients, BiovelocITA will support the creation and development of innovative biotech companies in all therapeutic areas.
For more information: www.biovelocita.com
Sofinnova Partners
Sofinnova Partners is a European venture capital firm, industry leader specializing in the biosciences. With Headquartered in Paris, the company brings together 12 highly skilled investment professionals from across Europe, the United States and China. The attention of Sofinnova Partners focuses on highly innovative technological business models and visionary entrepreneurs. The company's goal is to operate as a founding partner and principal investor in start-up and spin-off businesses. In over 40 years, Sofinnova Partners has promoted and funded nearly 500 companies creating global market leaders. Sofinnova Partners has a total volume of funds under management in excess of €1.3B.
For more information: www.sofinnova.fr
Banor SIM S.p.A, a Milan and Turin, Italy-based regulated investment company, is an Italian consultancy boutique specializing in asset management and financial advisory to high net worth individuals (HNWIs) and family offices. With offices in Milan, Turin and, thanks to its subsidiary Banor Capital Ltd, also in London, Luxembourg and Lugano, Banor SIM supports since long time successful business families and currently manages assets in excess of €4B.
Banor SIM S.p.A has recently been advisor for the IPO of Tesmec on the MTA of the Italian Stock Exchange and Industrial Stars of Italy and Initiative Bresciane on AIM. Banor sim followed as advisor the acquisition of the majority stakes in Barovier& Toso by DVR Capital and the sale of the majority stake in KD Pharma to Capiton.
For more information: www.banor.it/en/
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