Novartis would-be-daughter Proteon raises $15.2 million
Basel/Waltham - Expecting to be bought by Novartis, U.S.
biopharmaceutical firm Proteon Therapeutics Inc. has delivered a new $15.2 million financing. The Swiss pharmaceutical company Novartis obtained exclusive option to acquire Proteon after the successful completion of a Phase 2 clinical study of it’s drug PRT-201. In April, Proteon began enrolment in the clinical study for its lead product in chronic kidney disease patients undergoing surgery for arteriovenous fistula creation in preparation for haemodialysis. The new funding round is in exchange for equity and options. A total of 19 backers were involved in the round, but not listed by name. Previous investors in Proteon include Bessemer Venture Partners, Devon Park Bioventures, MPM Bio IV NVS Strategic Fund LP, Vectis Healthcare & Life Sciences Fund, TVM Capital, Skyline Ventures, Prism VentureWorks, Intersouth Partners and several angel investors.
The deal with Novartis was clinched in 2009, at the end of a successful series B financing round for Proteon. The Swiss have potential secondary rights to a global license under stipulated conditions. Between the acquisition and potential regulatory milestone payments, the deal with Novartis was valued at aotential $550 million.