Chase Pharmaceuticals Raises $21 Million in Series B Financing
WASHINGTON--(BUSINESS WIRE)--Chase Pharmaceuticals Corporation today announced a $21 million Series B financing via a syndicate led by New Rhein Healthcare Investors, LLC. Other new investors in this round include Edmond de Rothschild Investment Partners and Cipla Ventures, the new venture capital arm of Cipla Pharmaceuticals. The original venture investor, Brain Trust Accelerator Fund, also participated in this financing. The investment proceeds will be used to fund Phase 2a and Phase 2b clinical trials of the company’s lead product. Consistent with New Rhein’s business model, each of these investors brings significant operational experience to Chase.
Chase has a unique, patented approach that promises to significantly improve the efficacy and safety of currently marketed Alzheimer’s drugs such as ARICEPT® and Exelon®. The company was founded in 2007 by Thomas Chase, MD, former Scientific Director, National Institute of Neurological Disorders and Stroke (NINDS) and Kathleen Clarence-Smith, MD, PhD, former head of CNS development at Sanofi, Roche and Otsuka.
Dr. Chase, a Founder said, “Based on our Phase 1 studies, we expect Chase products will demonstrate a far greater therapeutic benefit than any currently marketed treatment for Alzheimer’s disease, resulting in a significant beneficial impact on the quality of life for all those afflicted by this cruel and incurable disorder.”
Greg Parekh, PhD, former head of M&A at Novartis AG and a partner at New Rhein, will serve as Chase’s Chairman of the Board. “Alzheimer’s disease afflicts 7.5 million Americans and represents one of our country’s most significant growing unmet medical needs. By cleverly improving existing on-market drugs, Chase Pharmaceuticals builds on proven therapies and offers patients and their caregivers new hope for a better quality of life in the relatively near term,” said Dr. Parekh.
In addition to Dr. Parekh, Raphaël Wisniewski of Edmond de Rothschild Investment Partners and Vikram Sudarsan, PhD, of Cipla New Ventures will join the board of the company.
John M. Siebert, PhD, will join as its Chief Executive Officer. John has a successful track record of over 15 years as CEO at both public and private specialty pharmaceutical companies such as Cima Labs and Cydex. He brings to Chase a wealth of complementary commercial experience.
About Chase
Chase is an early stage drug development company, based in Washington, DC. Its mission is to improve the quality of life for those suffering from disorders of brain function, especially cognitive dysfunction of the Alzheimer’s type. In the service of this goal, Chase Pharmaceuticals seeks to advance the development of its own intellectual property towards commercial products that satisfy crucial unmet medical needs. Current efforts, focused on pharmaceuticals for Alzheimer type dementia, include oral medications such as its lead product, CPC-201, as well as CPC 252 for transdermal administration. The privately held company received Series A funding in 2010 and 2011 from Brain Trust Accelerator Fund in support of its program of Phase I clinical trials. Please visit our website: www.chasepharmaceuticals.com.
About New Rhein Healthcare LLC
New Rhein is a private equity investment firm focused on healthcare therapeutics and medical devices. Its partners and associates are former industry executives with operational and transactional experience. New Rhein invests in businesses which utilize proven products in new applications (e.g., new indications, new dosage forms, 505(b2)). The company compiles syndicates of operational focused investors who together bring a wealth of experience and a broad network of relationships to support its portfolio companies in development, regulatory, reimbursement, marketing and/or contract manufacturing. New Rhein provides an understanding on what would be attractive to strategic partners and works backwards to help its portfolio companies build their value proposition. Prior New Rhein investments have included ophthalmic pharmaceuticals, molecular diagnostics and respiratory drug/device inhalers.
About Edmond de Rothschild Investment Partners
Paris-based Edmond de Rothschild Investment Partners is the private equity affiliate of the Edmond de Rothschild Group, which is specialized in asset management and private banking. Edmond de Rothschild Investment Partners is dedicated to minority investments into privately-owned companies. It has currently close to EUR1 billion under management which is being invested primarily as life sciences venture capital and growth capital. Its Life Sciences Team of eight professionals brings together over 60 years of experience in the Life Science industry and more than 100 years of private equity and venture capital experience. The team has raised over EUR450 million through its Biodiscovery franchise and is currently investing BioDiscovery 4. For more information please visit: www.edrip.fr.
About Cipla
Cipla is a global pharmaceutical company which uses cutting edge technology and innovation to meet the everyday needs of all patients. For more than 70 years, Cipla has emerged as one of the most respected pharmaceutical names in India as well as across more than 170 countries. Cipla’s portfolio includes 2000 products in 65 therapeutic categories with one quality standard globally. Cipla’s turnover in 2012/13 was 1.5 billion USD. While delivering a long-term sustainable business, Cipla recognizes its duty to provide affordable medicines.
Cipla’s emphasis on access for patients was recognized globally for the pioneering role played in HIV/AIDS treatment as the first pharmaceutical company to provide a triple combination anti-retroviral (ARV) in Africa at less than one dollar a day and thereby treating many millions of patients since 2001. Cipla’s research and development focuses on developing innovative products and drug delivery systems and has given India and the world many ‘firsts’ for instance Triomune. In a tightly regulated environment, the company’s manufacturing facilities have approvals from all the main regulators including USFDA, UKMHRA, WHO, MCC, ANVISA, and PMDA which means the company provides one universal standard both domestically and internationally.
About Brain Trust Accelerator Fund
The Brain Trust Accelerator Fund focuses on early stage investments that address the diagnosis and treatment of brain related diseases. Founded in 2006, the fund has provided both capital and resources for diagnostic, device and therapeutic companies developing technologies to deliver therapeutics across the blood brain barrier, a common barrier for treating many brain diseases; technologies to help optimize therapies that are most likely to benefit selected patients, often referred to as personalized medicine; and molecularly targeted therapies that target the abnormal pathways implicated in a variety of brain related disorders.
ARICEPT® is a registered trademark used by Eisai, Inc. and Exelon® is a registered trademark of Novartis.
Contacts
Chase Pharmaceuticals
John M. Siebert, 202-223-7002
Chief Executive Officer
cpcinfo@chasepharmaceuticals.com
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