For Immediate Release
Metabolex Raises $27 Million In Private Financing To Fuel Growth Of Diabetes-Focused Pharmaceutical Firm; Financing Supports Phase II Trials Of MBX-102 Novel Insulin Sensitizer
Aug. 27, 2003
HAYWARD, Calif.--(BUSINESS WIRE) -- Metabolex, Inc., a privately held pharmaceutical firm that discovers and develops drugs to treat diabetes and related metabolic diseases, today announced that it has raised $27 million in a private equity financing. The financing was co-led by a previous investor, Bay City Capital, and new investors Biotech Turnaround Fund BV and CDP Capital Technology Ventures. Other participants in the financing included previous investor Charter Ventures and new investor KBC. CIBC World Markets was the agent for this financing.
"We are pleased to close this significant financing, which gives us the resources to move forward energetically toward building the leading drug development company focused on metabolic diseases," said Harold Van Wart, Ph.D., Metabolex president and chief executive officer. "In particular, it will allow us to complete Phase II studies of our novel insulin sensitizer, MBX-102, as well as advance the development of additional compounds from our portfolio of potential drug candidates."
A. Barr Dolan, Metabolex's chairman of the board, and general partner of Charter Ventures, said, "This financing allows Metabolex to complete its transition to a product development company. I am particularly pleased that the new investors share our commitment to building a strong, focused business. We believe Metabolex can play a leading role in providing novel drugs to treat diabetes, one of the fastest growing care problems in the developed world."
New Board of Directors
As part of the financing, Metabolex also announced the restructuring of the company's board of directors. Continuing directors are Mr. Dolan and Dr. Van Wart. The four new directors are:
- Carl Goldfischer, M.D., managing director of Bay City Capital
- Sylvain Gareau, partner, CDP Capital Technology Ventures
- Jan Drayer, MD, independent pharmaceutical consultant to BTF
- Daan A. van den Noort, chief investment officer and managing partner of BTF.
"Diabetes is a fast growing epidemic, not only in the United States, but also in most of the developed world," said Dr. Goldfischer. "Due to the complexity of the disease, it remains a significant unmet need with relatively few drugs in development. Metabolex has created a leadership position in understanding the underlying pathology of diabetes and related conditions through its past research efforts with Abbott and current partnered programs with Pfizer and Yamanouchi. The company has also built a portfolio of interesting compounds for its own development efforts, including its potential best-in-class insulin sensitizer, MBX-102. We are very pleased to lend our support and assistance to Metabolex's outstanding scientific and management team to help them realize the full potential of this investment opportunity."
MBX-102 Development
MBX-102 is an investigational insulin sensitizer with a known mechanism of action as well as a superior activity and side-effect profile compared to currently approved drugs. It is a patented, single optical form (enantiomer) of a previously studied experimental drug with clinical history in more than 900 patients. However, MBX-102 lowers blood glucose and lipids without the gastrointestinal side effects of its parent compound.
"In Phase I clinical studies completed last year, MBX-102 was well tolerated at all doses and produced no significant gastrointestinal toxicity compared to placebo," said Dr. Van Wart. He noted that full results of the Phase I study will be presented at SMi's 5th Annual Diabetes Conference in London, England on October 27, 2003.
"With these new financial resources, we are now preparing to initiate a 256-patient Phase II study of MBX-102 during the fourth quarter," Dr. Van Wart added. "This study will look at the effect of three doses of MBX-102 on glucose control, as well as its overall safety and potential to cause edema and weight gain. These latter factors are significant adverse effects of currently marketed insulin sensitizers, but were not observed to a significant degree in previous studies with MBX-102's parent compound."
About Metabolex
Metabolex, Inc. is a privately held pharmaceutical company dedicated to the discovery and development of drugs to treat diabetes and related metabolic disorders. The company's lead compound, MBX-102, is a novel insulin sensitizer in Phase I-II clinical development. Metabolex has also built a portfolio of other potential diabetes therapeutics, which includes a product candidate in preclinical development plus three programs optimizing lead drug candidates. One of these programs is partnered with Abbott Laboratories. Additionally, Metabolex has two target discovery programs that have produced one of the world's largest databases of diabetes-expressed genes. One of these programs, in insulin secretion, is partnered with Pfizer. The other, in insulin resistance, is partnered with Yamanouchi Pharmaceuticals Co. Ltd.
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