Vascular Pharmaceuticals, Inc., a Chapel Hill, NC-based drug discovery company developing a product to treat patients with complications arising from diabetes, has completed a $16m Series A equity financing.
The round was co-led by Intersouth Partners and MPM Capital.
The company intends to use the funding to continue to develop its VPI-2690B, a pre-clinical candidate for the treatment of diabetic nephropathy. VPI-2690B, which targets a pathway that is stimulated by hyperglycemia, has been shown to slow the development of diabetic complications including nephropathy, accelerated atherosclerosis and retinopathy.
Led by Richard Shea, CEO, Vascular Pharma has also entered into a deal with Janssen Biotech, Inc., which grants Janssen the exclusive (discretional) right to acquire Vascular Pharma, following the completion of a planned Phase 2 clinical study of VPI-2690B. Janssen will provide Vascular Pharma with an initial upfront payment and certain contingent milestone payments in return for its rights under the agreement.
In conjunction with the investment, Richard Kent, M.D., Partner at Intersouth Partners and Vaughn Kailian, Managing Director of MPM Capital, will join the company’s Board of Directors.