Portfolio Press Release
AkaRx Inc Launches as Spin-Off from Astellas; Announces $11.1M Series A Raise
Paramus, NJ - November 30, 2005 — AkaRx Inc., an emerging drug development company, announced today that the firm has completed an $11.1M Series A financing and initiated a Phase I study with it's lead compound, a treatment for a hematological indication. AkaRx's founding management team originated with Yamanouchi Pharma America (YPA), now part of Astellas Pharmaceuticals: the merger of Yamanouchi and Fujisawa. The lead compound was discovered by Yamanouchi Pharmaceutical Co. Ltd. and world wide rights have been licensed to AkaRx. Participants in the Series A financing are Sutter Hill Ventures, InterWest Partners and Astellas Venture Captial.
The financing will fund Phase I safety trials with AkaRx's lead compound and support ongoing due diligence on several additional licensing candidates. Given the founders' tenure as members of the senior drug development team at YPA and their close ties to Astellas and other Japanese companies, AkaRx hopes to concentrate in-licensing efforts on partnerships with Japanese firms.
"We have a very experienced, accomplished and highly motivated team at AkaRx," said Dr. Robert Desjardins, President and CEO of the company. "I am delighted that Sutter Hill and InterWest share our vision of building a premier pharmaceutical company that combines our expertise in U.S. drug development and regulatory affairs with the opportunity to access unique pharmaceutical assets from Japanese partners."
"In addition to the commitment from Sutter Hill and InterWest, I am most grateful for the support we have received from Astellas in founding AkaRx," continued Desjardins. "It is evident from their financial support and encouragement during our start-up stage and their willingness to license of our first compound that they trust and believe in our capabilities. We hope to prove them right in every respect and to emerge a preferred development partner for Astellas and other Japanese firms."
Coincident with completing the Series A raise, AkaRx filed an IND with the U.S. Food and Drug Administration to initiate clinical trials with it's lead program. Patient screening for enrollment began on October 5 and data are expected in the second quarter of 2006.
"It's not often that you find this level of experience in a young company. "Bob and his three co-founders have worked together extremely successfully for over five years and in the industry for many more than that. To be dosing patients two months after investing is really quite unique", commented Dr. Arnold Oronsky, General Partner at Interwest. "We are enthusiastic about working with this team to bring in other interesting assets", he continued. Dr. Jeff Bird, Managing Director at Sutter Hill added, ""We are very pleased to be working with Astellas as a strategic partner and co-investor, and look forward to a close alliance with them in building a new company with important products in development". Both Drs. Bird and Oronsky have joined the AkaRx Board of Directors.
AkaRx is located in Paramus, N.J. in the former YPA headquarters. In addition to Dr. Desjardins, the founders include Dr. Donna Tempel, Mr. Rudolph Lucek and Mr. Steven Silbert. The company has 10 full-time employees.