Raleigh-based Innovate Biopharmaceuticals, a clinical stage biotechnology company focused on developing novel therapeutics for autoimmune and inflammatory diseases, has raised around $9.7 million in new financing from 17 investors, according to a recent SEC filing.

Under the deal, some 4.1 million shares of common stock will be sold at $4 per share, and up to 2.5 million shares at $2.56 per share.

The deal is with SDS Capital Partners II LLC and other investors.

Innovate founder and chief business officer Jay Madan, told WRAL TechWire: “We are pleased with the recent round of funding and the upcoming advancement of our lead program INN-202, or larazotide acetate, into the first ever Phase 3 trial for celiac disease.”

The filing comes after the firm confirmed last month plans to raise millions ahead of its trial.

Its lead compound, INN-202, targets celiac disease,  a type of inflammatory bowel disease that affects 3 million people in the United States, and about 15 million worldwide.

Innovate focuses on developing novel medicines for autoimmune and inflammatory diseases with unmet needs. Their pipeline includes drug candidates for celiac disease, NASH, Crohn’s, and ulcerative colitis.

In February, the company announced the departure of CEO Christopher Prior to pursue other opportunities. Sandeep Laumas was appointed as Innovate’s CEO.

Laumas was quoted as saying at the time:  “Our team remains focused on meeting our business goals of having the first to market treatment for celiac disease and creating long-term value for our shareholders.”

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