Cambridge, UK, 4 October 2010. Convergence Pharmaceuticals Ltd, a new company
focused on the development of novel and high value analgesic medicines, was officially
launched today and has successfully raised $35.4 million (£22.4 million) in Series A
financing from a syndicate of leading European and US life science investors.
Convergence Pharmaceuticals is an independent biotechnology company that has acquired
clinical assets from GlaxoSmithKline (“GSK”). The Company will be led by Dr Clive Dix
together with a strong management team including former GSK scientific experts in the field
of pain. Proceeds of the financing will be used to accelerate the clinical development of the
Company’s pipeline programmes.
Convergence Pharmaceuticals has Phase I and Phase II clinical programmes in
development and a pipeline of six earlier stage compounds. Drugs within the pipeline target
the major points of convergence in chronic pain signaling through modulation of specific
ion-channels. Convergence Pharmaceuticals, which has a well validated approach to pain
therapy, will immediately initiate Phase II proof of concept studies in neuropathic pain with
the Company’s lead drug, a voltage-gated sodium channel blocker (CNV1014802), and a
Phase I study of its first-in-class voltage-gated calcium channel blocker (CNV2197944) for
the treatment of neuropathic and inflammatory pain including osteoarthritis. Both of these
compounds have demonstrated efficacy, safety and tolerability profiles to date and have
functional properties that differentiate them from currently available chronic pain treatments.
Convergence Pharmaceuticals aims to develop its pipeline to address the severe unmet
medical need in chronic pain, a significant economic burden where more than 270 million
people worldwide suffer1.
The chronic pain market is currently valued at $30 billion and is
forecast to reach more than $47 billion by 2023 (with an expected 22% of the market being
provided by novel pain therapies2). Currently available treatments, including opioids and
non-steroidal anti-inflammatory medicines, are often associated with negative side-effect
profiles and limited efficacy and therefore do not offer a long-term solution. This highlights
the importance of Convergence Pharmaceuticals’ goals to develop novel, efficacious
analgesics with improved pharmacology and safety profiles.
Dr Clive Dix is Chief Executive Officer of Convergence Pharmaceuticals. Dr Dix has
managed successful exits from Auralis and PowderMed Ltd, the latter of which he co-
founded in 2004 and sold to Pfizer Inc for more than $300M in 2006. Clive was previously
Head of R&D at PowderJect Pharmaceuticals plc and prior to that was UK Research
Director for Glaxo Wellcome. Dr Dix was most recently Chairman of the UK’s BioIndustry
Association. The Company’s R&D will be led by Simon Tate, previously VP, Pain and Epilepsy Discovery Performance Unit within GSK’s Neurosciences Centre of Excellence for
Drug Discovery and now Chief Scientific Officer of Convergence Pharmaceuticals. Simon
brings significant scientific experience in the field of pain and ion channels to Convergence
Pharmaceuticals. Convergence Pharmaceuticals has also attracted Brenda Reynolds as
Chief Operating Officer. Brenda, who was a founder and the Chief Operating Officer of
PowderMed Ltd, has extensive experience from the healthcare sector.
As part of the transaction with GSK, the clinical-stage assets and associated IP have been
successfully transferred from GSK to Convergence Pharmaceuticals. The Company and its
team of expert scientists will be based at the Babraham Research Campus in Cambridge,
UK.
Convergence Pharmaceuticals’ new shareholders include Apposite Capital, New Leaf
Venture Partners and SV Life Sciences and the new Board Directors include Chris
Hollowood, Liam Ratcliffe and Kate Bingham respectively. GSK has a minority equity
stake.
Commenting on the launch of the Company today and the successful fundraising, Dr
Clive Dix, Chief Executive Officer of Convergence Pharmaceuticals, said: “We are
delighted to have worked closely with GSK to successfully transfer these clinical assets to
Convergence Pharmaceuticals. The lead compounds offer critical advantages for the
development and commercialisation of novel analgesics to address the need for innovative
treatments in the high value chronic pain market. Our team of experts bring a strong
knowledge of the science and pipeline and will focus on advancing these drugs through
clinical development. We look forward to exploring commercial opportunities for these
compounds at the relevant time. Given market conditions, we are pleased to have raised
such a significant amount of funding, one of the largest European biotechnology Series A
funding rounds in recent years, and feel this is a strong endorsement of the quality of the
Company, its products, science and the staff within it.”
About Convergence Pharmaceuticals
Convergence Pharmaceuticals is an independent biotechnology company focused on the
development of novel analgesics with potentially commercially attractive efficacy,
responder-rate and side effect profiles. The Company was formed in October 2010
following the acquisition of certain neuroscience clinical assets from GlaxoSmithKline
(“GSK”). Convergence Pharmaceuticals has a pipeline of differentiated clinical-stage
compounds targeting the points of convergence in chronic pain signaling through
modulation of specific ion-channels. Convergence Pharmaceuticals is well funded and raised $35.4 million in Series A financing from a syndicate of leading European and US
VCs.
The Company’s Executive team is lead by Clive Dix, Chief Executive Officer (ex
PowderMed, PowderJect, Glaxo Wellcome); Simon Tate, Chief Scientific Officer (ex GSK);
Brenda Reynolds, Chief Operating Officer (ex PowderMed, PowderJect, Pfizer); Kevin
Gunn, Medical Director (ex GSK); Joanne Palmer, Head of Clinical Operations (ex GSK);
Ged Giblin, Head of Chemistry and Pre-Clinical Development (ex GSK) and John Davis,
Head of Biology (ex GSK). The team collectively has extensive experience in leading
successful biotech ventures and in drug development.
For more information about Convergence Pharmaceuticals, please visit
www.convergencepharma.com.
About the chronic pain market
The unmet medical need for new analgesic medicines is significant and growing
internationally. The economic burden of chronic pain in the US alone is more than $100bn
and by 2023 the overall pain market in the seven major pharmaceutical markets is
predicted to reach more than $47 billion. In the same seven pharmaceutical markets, 160
million people are estimated to suffer from osteoarthritis, 36 million people are estimated to
suffer from chronic low back pain and sciatica and over 10 million people are estimated to
suffer from neuropathic pain. Source: Decision Resources: “Novel approaches to pain
therapy”. August 2008-9.
About Apposite Capital
Apposite Capital is an independent investment firm focused exclusively on Healthcare. The
firm invests in private companies involved in Healthcare Services and Life Sciences on a
primary basis, as well as acquiring and managing direct Healthcare assets in the secondary
market. Apposite has an in-depth sector knowledge covering all aspects of the healthcare
industry globally, with a unique unrivalled reach to Japan. The investment team combines
complementary entrepreneurial, private equity and investment banking skills.
Apposite has built a high quality primary portfolio of companies in the US and Europe. The
firm invests in seasoned management with a clear vision and is committed to adding value
to its portfolio companies. Apposite balances its investments across all stages of company
development, providing venture, development and growth financings as well as buyout
capital. Apposite typically invests as a lead investor and has a representation at the Board
of Directors. Created in 2006, Apposite is headquartered in London, UK and has a
presence in San Francisco, CA, USA. For more information please visit
www.appositecapital.com.
About New Leaf Venture Partners
New Leaf Venture Partners is a leader in healthcare technology venture investing. Our
investment professionals bring a unique blend of technological, clinical, and operational
experience to our investments. We work closely with our entrepreneurs to help build
successful portfolio companies. We focus primarily on later stage biopharmaceutical
products, early stage medical devices, and laboratory infrastructure technologies.
New Leaf currently manages $1.3 billion in assets. This includes our newest fund, New Leaf
Ventures II, L.P. which closed with commitments of $450 million in October 2007, New Leaf Ventures I, L.P. and the healthcare technology portfolio of the Sprout Group, one of the
oldest U.S. venture capital fund groups. For more information please visit
http://www.nlvpartners.com
About SV Life Sciences
SV Life Sciences is a leading international life sciences venture capital firm. SVLS affiliated
funds have been investing in life sciences companies since the early 1980s and the firm
closed its first dedicated life sciences fund in 1994. The SVLS team manages six venture
capital funds and a publicly traded investment trust with approximately $2 billion of capital
under management. The firm employs a diversified strategy within life sciences in order to
selectively capitalize on an expanding opportunity in biotech, medical devices and health-
care services. SVLS has offices in Boston, London and San Francisco. For more
information please visit www.svlsa.com and www.ibtplc.com.
