Eton Pharmaceuticals, a San Diego, CA-based developer of a proprietary corticotropin product candidate, raised $20M in Series A financing.
Eton has entered into a definitive securities purchase agreement with various accredited investors, in a private placement of preferred stock. The investor syndicate consists of a number of healthcare and other accredited investors, including certain members of the Imprimis and Eton boards of directors. In conjunction with the financing, Charles Casamento, a former CEO of Questcor, Inc. and current executive director and principal of the Sage Group, has joined the Board of Directors of Eton.
The company will use the proceeds of the financing to develop its patent-pending sterile injectable drug candidate pipeline, as well as for general corporate purposes.
Eton Pharmaceuticals was formed by Imprimis Pharmaceuticals, Inc. (NASDAQ: IMMY) as a separately managed and financed entity to develop and commercialize two of Imprimis’ patent-pending sterile injectable drug candidates utilizing the FDA 505(b)(2) regulatory pathway.
The company’s current portfolio consists of two proprietary product candidates:
(1) a patent-pending gelatin-free and preservative free 39 amino acid peptide synthetic corticotropin, an adrenocorticotropic hormone (ACTH) analogue, as a potential competitor to H.P. Acthar® gel; and
(2) a patent-pending injectable pentoxifylline formulation, as a potential treatment for Peyronie’s disease and an alternative or supplementary therapy to Xiaflex®.
Eton has signed agreements to acquire two additional sterile injectable product candidates that it plans to qualify under the Drug Efficacy Study Implementation (DESI) program, and commercialize through the 505(b)(2) regulatory pathway.
Following the completion of this financing, Imprimis will retain approximately 27% equity ownership in the company and have a royalty interest in the two sterile injectable drug candidates pursuant to asset purchase and license agreements between the two companies.