Raleigh-based Innovate Biopharmaceuticals, a clinical stage company focused on developing novel gastroenterology medicines. has sold a little over a fourth of a multi-million dolllar debt raise, according to a US Securities and Exchange Commission.
The company raised $2.651,600 of a $10 million debt and securities round from 19 investors and disclosed it in an SEC filing.The filing reports that 19 unidentified investors participated, which ia the same number that invested in a previous round, suggesting they have contining support.
The company reported raising about $1.5 million of a debt round in February 2016. The company has obviously increased the amount of debt it plans to raise.
The company pipeline includes drug candidates for Celiac Disease, an unmet need, an adult orphan indication as well as ulcerative colitis.
Innovate has all global rights to the products which are backed by more than 150 patents worldwide.
In January last year, Innovate entered into an agreement to purchase all assets related to RG-1068, a synthetic version of human secretin from Repligen Corporation. Repligen has completed a Phase 3 study demonstrating that RG-1068 improved detection of pancreatic duct abnormalities in patients with known or suspected pancreatitis.
Secretin is a 27 amino acid long hormone which rapidly stimulates release of pancreatic secretions, thus improving visualization of the pancreatic ducts during imaging procedures such as an MRI.
Innovate’s other key product, INN-108, is a patent-protected oral small molecule new chemical entity with a novel mechanism of action for mild to moderate Ulcerative Colitis. INN-108 is entering phase II clinical trials in 2015. Innovate owns global rights to both INN-329 and INN-108.
In February 2016, Innovate the company has completed an agreement to license all of Alba Therapeutics’ assets relating to larazotide acetate, a tight junction regulator, progressing toward Phase 3 clinical trials for the treatment of celiac disease. The agreement includes up-front and milestone payments, but financial terms were not disclosed.
Celiac Disease affects 3 million people in te US and about 15 million worldwide.Currently, there are no pharmacological therapies available to treat celiac disease.
Celiac Disease an autoimmune disorder that is triggered by the ingestion of gluten, which is primarily found in bread, pasta, cookies, pizza crust and other foods containing wheat, barley or rye. People with celiac disease who are exposed to gluten experience an immune reaction in their small intestines, causing damage to the inner surface (villi) of the small intestine, and an inability to absorb certain nutrients.
