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Diasome Pharmaceuticals Lands $30M

2017-07-06
CLEVELAND, OH, Diasome Pharmaceuticals, a developer of treatments for diabetes and other metabolic conditions, has agreed to raise up to $30 million in funding.
Diasome Pharmaceuticals, an innovative life sciences technology company focused on the development of novel therapies for the treatment of diabetes and other metabolic conditions, announced the agreement today of new funding of up to $30 million led by Medicxi, a leading European life sciences venture capital firm. Diasome is the first investment from Medicxi's recently announced Growth Fund I. Other investors in this round include the JDRF T1D Fund (Boston, MA), Black Beret Life Sciences, LLC (Houston, TX), and an investor group led by McDonald Partners, LLC (Cleveland, OH).

Diasome's Hepatocyte Directed Vesicles (HDV) technology additive to commercial insulin therapies allows preferential delivery of insulin to the liver's hepatocytes. HDV-insulin is the most clinically advanced novel pre-meal insulin in the global insulin pipeline, and if approved would represent the first insulin therapy specifically designed to mimic the mealtime exposure of the liver to insulin.

"The investment by Medicxi, JDRF T1D Fund, Black Beret, and McDonald Partners represents a significant validation of Diasome's technology, and we will benefit from their track records of working with and advising successful drug development companies," said Robert Geho, CEO of Diasome.

Medicxi founding partner Dr. Michele Ollier said, "It has never been understood why insulin as a hormone replacement therapy cannot mimic the endogenous insulin activity. With HDV liver-targeted insulin, Diasome is providing a simple and elegant answer to this problem, with their preliminary human data showing that HDV makes commercial insulin more physiological, and therefore, significantly more effective. We look forward to assessing the results of the ongoing Phase 2 studies." Medicxi founding partner Mr. Giuseppe Zocco added, "Diasome is the first investment from Medicxi's Growth Fund I, and the company represents a unique and disruptive opportunity in the global diabetes field. The HDV system's proprietary mechanism of action and physiology-based design are without precedent in the diabetes pharmaceutical landscape." Concurrent with Medicxi's investment, Dr. Ollier and Mr. Zocco have joined Diasome's Board of Directors.

Jonathan Behr, PhD, Managing Director of the JDRF T1D Fund, said, "JDRF knows how challenging it has been to provide patients with Type 1 diabetes insulin therapies that are able to lower overall blood glucose levels while avoiding and protecting against low blood sugar, or hypoglycemic, episodes. We recognize that HDV + insulin therapy could be a significant advance for patients, and we are excited to support Diasome's team as they move forward."

Diasome will use the proceeds of this funding to continue its clinical development program and general operations, including the execution of its ongoing ISLE-1 (InSulin Liver Effect) Phase 2b study of HDV-Insulin in subjects with Type 1 diabetes. This study is being conducted at more than 20 sites in the United States and is nearing the end of its enrollment period. Diasome has also initiated patient enrollment in two new Phase 2 human (Type 1 diabetes) studies of HDV + insulin within the last month.

About Diasome Pharmaceuticals, Inc.

Diasome Pharmaceuticals, Inc. is a clinical stage biopharmaceutical company focused on the clinical and commercial development of breakthrough therapies for diabetes and obesity. Based on more than thirty years of research and development in the fields of cell receptor targeting, insulin formulation, and hepatic (liver) glucose metabolism, the company's pipeline includes novel, proprietary liver targeted insulins for both Type 1 and Type 2 diabetes patients that are currently being tested in multiple human clinical trials. In addition, Diasome is developing a first-in-class oral compound for the Type 2 diabetes population that is based upon new insights into normal glucose metabolism and a novel mechanism of action. For more information, visit www.diasome.com.

About Medicxi

Medicxi is based in London, Geneva and Jersey. The Company's mission is to invest across the full healthcare continuum. Medicxi was established by the former Index Ventures life sciences team. Medicxi manages the legacy life science portfolio of Index Ventures as well as the new funds launched as Medicxi, Medicxi Ventures 1 (MV1) and Medicxi Growth 1 (MG1) focusing on early-stage and late-stage investments in life sciences.

GSK, Johnson & Johnson and Novartis, three of the world's largest pharmaceutical companies back Medicxi along with Verily, an Alphabet company. These companies, whilst participating in the SABs of the funds, do not receive any preferential rights to the portfolio companies.

Medicxi's team has been investing in life sciences for over 20 years and has backed many successful companies, including Genmab (Nasdaq Copenhagen: GEN), PanGenetics (sold to AbbVie), Molecular Partners (SWX: MOLN), XO1 (sold to Janssen), Egalet (Nasdaq: EGLT), Minerva Neurosciences (Nasdaq: NERV), and Versartis (NASDAQ: VSAR).

See https://www.medicxi.com for more information.
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