A Frederick biotechnology company has secured $16.6 million in new funding and brought on a new chief medical officer as it prepares to launch clinical trials to bring its lead product closer to market.
Veralox Therapeutics's Series A round was led by Hatteras Venture Partners, a North Carolina venture capital firm that backs companies developing biopharmaceuticals, medical devices, diagnostics and other health related technologies. Other biotech and health-focused investors, Genesys Capital and Alexandria Venture Investments also participated, along with Point Field Partners, an investment firm with connections to Baltimore Ravens owner Steve Bisciotti, and existing Veralox investors, including Sanofi Ventures, JDRF T1D Fund, the Maryland Momentum Fund, VTC Innovation Fund and TEDCO. The company is previously backed by $5.4 million in seed funding.
Veralox specializes in developing drugs to address unmet medical needs and plans to use the funding to advance development and pursue Phase 1 clinical trials for its lead candidate, known as VLX-1005. The drug is designed for the treatment of heparin induced thrombocytopenia (HIT), an immune issue which prevents effective clotting of a patient's blood.
The drug was granted an Orphan Drug Designation by the U.S. Food and Drug Administration (FDA) earlier this year, a status given to drugs intended for use in the treatment, diagnosis or prevention of rare health conditions that affect fewer than 200,000 people in the U.S. The FDA also recently approved the company's Investigational New Drug (IND) application, clearing the way for the VLX-1005 trials.
Jeffrey W. Strovel, CEO of Veralox, said in statements the new financing will help the three-year-old company build on the "significant momentum" it has seen in recent months.
In addition to bringing on new investors and funding dollars, Veralox has gained two new board members — Ben Scruggs, principal at Hatteras Venture Partners, and Jamie Stiff, managing director at Genesys Capital — and brought on a new chief medical officer with extensive experience in leading clinical trials.
Dr. Michael S. Hanna is a cardiologist and cardiac electrophysiologist. He served on the faculty at the University of Pennsylvania for a decade, where he led multiple international clinical trials. He also previously worked with Bristol-Myers Squibb, where he held leadership positions in global clinical research, including serving as executive director and clinical lead on the development program for the drug Eliquis (apixaban), an anti-clotting medication which earned regulatory approvals in more than 95 countries.
Strovel stated that Hanna "brings outstanding experience in global clinical research" during this important time in Veralox's growth.
