Allecra kicks off with €15m
19.04.2013 - Edmond de Rothschild and Forbion Capital Partners have co-led a Series A investment in anti-infectives company, Allecra Therapeutics.
Antibiotic resistance is a global problem, which has triggered huge investments into development of new drugs against difficult to treat bugs. Yesterday, Allecra Therapeutics GmbH started operations with a co-investment totalling €15m from Edmond de Rothschild Investment Partners, Forbion Capital Partners and EMBL Venture Funds. The German-French company (Loerrach, Saint Louis) aims to bring two novel antibiotics to clinical stage targeting multi-drug resistant gram-negative bugs such as Pseudomonas aeruginosa or Klebsiella pneumoniae. IP has been already in-licenced from Indian Orchid Chemicals & Therapeutics Ltd in Chennai.
According to Orchid Chairman Raghavendra Rao, his company received a €1m upfront payment. „This is a big shot in arm for our drug discovery programme because we have been investing in basic R&D for some time now. We will be holding around 20% shareholding into that company and molecule and, as it progresses, we will get further revenues from it in the form of exit bonuses and further royalties.“ The Indian company recently reported progress in the antibiotic field boosting the performance of common antibiotics by application of silver nanoparticles provided by the fungus Trichoderma viridus.
Allecra’s drug development will be based on a strategic partnership between Allecra’s founders headed by CEO Nicolas Benedict with Orchid. Allecra’s Board member Holger Reithinger from Forbion Capital said: “We have a specialist team, each of whom is deeply experienced in the development of antibiotics and which collectively is supported by a world-leading group of Opinion Leaders.” Board member Olivier Litzka from Edmond de Rothschild Investment Partners added: “Allecra’s strategic partnership with Orchid is an innovative collaboration bringing together Allecra’s strong development capability with Orchid’s track record in antibiotic research and manufacturing. This is a new company built on a solid foundation for success.”