Investment round led by founding investors, OrbiMed Israel and OrbiMed US, and Longitude Capital, with participation by RA Capital Management and Pontifax
SAN FRANCISCO and HERZLIYA, Israel, Oct. 25, 2018 /PRNewswire/ -- 89Bio, a clinical-stage biopharmaceutical company focused on nonalcoholic steatohepatitis (NASH) and other liver and metabolic disorders, today announced it has closed a $60 million Series A financing. The funding will be used to advance the company’s pipeline of biologic and small molecule drug candidates acquired from Teva Pharmaceutical Industries, Ltd. The investment round was led by OrbiMed Israel, OrbiMed US, and Longitude Capital and joined by RA Capital Management and Pontifax. OrbiMed Israel and OrbiMed US founded 89Bio. 89Bio’s lead candidate for the treatment of NASH is BIO89-100 (formerly TEV-47948). Currently in Phase 1, BIO89-100 is a novel long-acting glycopegylated fibroblast growth factor 21 (FGF21) analogue that was developed using a proprietary glycopegylation technology to prolong the half-life and optimize the biological activity of native FGF21. In preclinical studies BIO89-100 demonstrated a long half-life, potentially enabling extended-interval dosing, and significant improvements in biomarkers such as body weight, blood glucose, and lipids. 89Bio also has an undisclosed preclinical compound with potential utility in the treatment of NASH and other related disorders. “NASH is a common and complex multifactorial disease linked to obesity and type 2 diabetes for which there are no approved treatments,” said Arun Sanyal, MD, professor of gastroenterology and hepatology at the Virginia Commonwealth University. “FGF21 is a compelling target for intervention. Given its metabolic role across multiple organs, BIO89-100 has the potential of affecting the disease pathway in both metabolic and fibrosis endpoints.” The company also announced the appointment of seasoned biopharmaceutical executive Rohan Palekar as CEO. Mr. Palekar most recently served as president and CEO of Avanir Pharmaceuticals from 2015 to 2017, after holding key leadership roles upon joining the company in 2012. Avanir was acquired by Otsuka Pharmaceuticals in 2015. Previously Mr. Palekar was the chief commercial officer of Medivation, and he also held senior commercial and strategic management roles at Johnson & Johnson. Mr. Palekar received an MBA from the Amos Tuck School of Business Administration at Dartmouth College and bachelor’s degrees in law and accounting from the University of Bombay. “I’m excited to join 89Bio, which has been formed around a promising program in NASH that is anchored by BIO89-100, a precisely engineered FGF21 analogue with unique properties,” says Mr. Palekar. “I have great confidence in the ability of our team, together with our top-tier life sciences investors, to achieve the company’s full potential and deliver life-changing treatments to patients in need.” Additional executive team appointments include:
In addition, Dr. Michael Hayden, prior president of global R&D and chief scientific officer at Teva Pharmaceutical, joins 89Bio’s board of directors as founding board member. OrbiMed is represented by Anat Naschitz, Managing Director and Steve Squinto, Venture Partner and seasoned biotech executive; Longitude is represented by Greg Grunberg, MD, Managing Director; RA is represented by Derek DiRocco and Pontifax by Tomer Kariv. Rohan Palekar joins as CEO. About NASH About 89Bio About OrbiMed About Longitude Capital About RA Capital Management About Pontifax Media Contact:
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