Canadian Biopharmaceutical Company Announces $52 Million Financing For Anti-Lupus Drug
By Liisa Vexler
Aurinia Pharmaceuticals, based in Victoria, has raised the record amount of US$52 million for clinical and nonclinical development of voclosporin as treatment for lupus nephritis, an autoimmune disease that affects the kidneys. Some of the funds will be used for the company's operating expenses.
Richard Glickman, chairman of Aurinia, said that this was the largest private investment in a public equity financing initiative for a Canadian health care company. Aurinia issued just under 19 million units at a price of US$2.7485 for each unit. The offering is subject to regulatory approval. The main investors were venBio, New Enterprise Associates, Redmile Group, RA Capital Management, Great Point Partners, and Apple Tree Partners. Various other institutions also invested, including existing shareholders. One of the founders of venBio. Kurt von Emster, will join the board of directors. Many of Aurinia's executives are former managers of Aspreva, which was bought in 2007 by Galenica for $915 million, a Canadian record.
Stephen Zaruby, Chief Executive Officer of Aurinia, said, "We greatly appreciate the confidence shown by such high-quality life science investors in leading this financing. This has provided us with the necessary resources to begin implementing our strategic plan."
Lupus nephritis affects about 3 million people worldwide and about 1.5 million in the USA. If it isn't treated, patients risk kidney failure and may need dialysis and transplantation surgery. Aurinia plans to develop treatments combining Aurinia's lead drug voclosporin with CellCept (developed by Aspreva). This aggressive approach aims to put patients into remission and keep them there, reducing the need for kidney transplants. The new funding means that clinical trials can begin.