Scioderm Locks In $20 Million Series B
December 18, 2014
By Riley McDermid, BioSpace.com Breaking News Sr. Editor
Scrappy biotech startup Scioderm, Inc said Thursday that it has closed a $20 million Series B financing funding round led by Redmile Group, a new investor in the company, money which it will use to develop treatments for rare genetic disease Epidermolysis Bullosa (EB), which causes hyper-fragile skin, susceptible to blistering and tearing.
As part of the deal, Mike Lee, an executive with Redmile, will join the Scioderm’s board of directors.
Scioderm said it would plough that money back into developing ZorblisaTM (SD-101), a proprietary topical therapy for EB, which currently has no known cure. The company will also need the money to shepherd the drug through the maze of American and European Union clinical registration programs.
The company has already received Breakthrough Therapy designation for Zorblisa from the U.S. Food and Drug Administration, as well as orphan drug designation from the FDA and EMA.
Scioderm also completed a successful Phase 2 study SD-003 study, which was a double-blind, randomized, placebo-controlled, dose-response trial to evaluate the efficacy and safety of different dosage strengths of Zorblisa in the treatment of EB. The drug has shown potential to accelerate wound healing and close chronic wounds, in addition to reduction in itching and the frequency of outbreaks of lesions and blisters.
"With no approved therapy available, EB patients and their families experience prolonged and significant suffering," said Robert Ryan, chief executive officer of Scioderm, in a statement.
"We are delighted to have successfully completed this financing round with world class investors and view the support of both our new and current investors as a strong endorsement of the team, our strategy and technology,” he said. “We look forward to their support and insights as we continue developing Zorblisa as rapidly as possible for the patients and families suffering from this devastating disease."
Scioderm said it plans to initiate its next trial in the first quarter of 2015, and expects to have top-line results in the second half of 2015.
"We are happy to be associated with Scioderm and their impressive team," said Mike Lee of Redmile Group. "We look forward to working on such a debilitating disease for which there is no cure."
Current investors in the company include well-known biotech venture capitalists Morganthaler Ventures and Technology Partners, who also participated in the Series B round. J.P. Morgan Securities acted as sole placement agent on the financing.
"The support of industry leaders such as Redmile Group speaks to the strength of Scioderm's pipeline and management team," said Roger Quy, member of the Scioderm board of directors and general partner at Technology Partners. "Zorblisa has significant potential to meet this important unmet medical need."