This brings the total funds raised by the company to nearly $50m since it was founded in 2006.
This latest round was led by Hopen Life Sciences, with participation from existing investor Southwest Michigan First Life Science Fund.
The capital infusion will support the company’s 90-day, multinational Phase 2b study of its novel drug candidate (MSDC-0160) targeted at type 2 diabetes. The double-blind clinical trial, which began enrolling patients in September, will involve more than 420 patients at 30 planned sites throughout the United States and India.
The funding also will allow MSDC to conduct Phase 1b and Phase 2a trials on a second novel drug candidate (MSDC-0602) and expand research efforts that further detail the unique mechanism of action of these compounds.
The company also announced that it has named Stephen C. Benoit as its new chief executive officer. Benoit, an executive with a record of creating new ventures and leading businesses in the life sciences, consumer packaged goods, education services and financial services industries, joins MSDC after having served most recently as the founding president and chief operating officer of the Global Food Protection Institute (GFPI). Prior to GFPI, Benoit was president and chief executive officer of NanoMed Pharmaceuticals, a nanotechnology-based oncology drug development company.