Tranzyme Pharma closed on a double rarity in venture financing this week: Not only a new round of financing but an over-subscribed round.
The RTP-based firm, which launched in 2002 at the Becton-Dickinson bioincubator, said Thursday that it had closed on $32 million in new financing.
Part of the financing is the conversion of $6 million in notes which were included in Tranzyme’s December 2003 merger with Neokimia, a company based in Quebec.
Tranzyme is focused on development of drugs to treat gastrointestinal disorders and has one candidate nearing the trial stage.
“The funds raised in this round of financing will allow us to accelerate the clinical development of our lead compounds and focus on additional discovery and pre-clinical development efforts to expand our pipeline,” said Vipin Garg, president and chief executive officer of Tranzyme, in a statement.
New investors in the round are H.I.G. Ventures, Thomas, McNerney & Partners and Quaker BioVentures. Existing investors Business Development Bank of Canada (BDC Venture Capital), Desjardins Venture Capital, Pacific Rim Ventures and The Solidarity Fund (FTQ) also participated.
“This financing brings together an international group of investors committed to advancing the company’s therapeutics through the clinic,” said David Drutz, the chairman of Tranzyme who also is a general partner with Pacific Rim Ventures. “The company has made outstanding progress in the last twelve months and has met or exceeded all of its development milestones.”
Tranzyme hopes to have its lead product, known as TZP-101, in clinical trials before the end of the year. It is intended to treat heartburn.
Other potential drugs in its development pipeline include diabetic gastroparesis, irritable bowel syndrome and functional dyspepsia.
Aaron Davidson, managing director of H.I.G. Ventures, Alex Zisson, venture partner at Thomas McNerney & Partners, and Brenda Gavin, managing partner of Quaker BioVentures, join the Tranzyme board as part of the investment.