Proteon raises $38m in financing, initiates kidney failure trial

Proteon Therapeutics, a biopharmaceutical company, has successfully completed a $38m series B equity financing, led by MPM Capital on behalf of the MPM Bio IV NVS Strategic Fund. The company also initiated a Phase I/II human clinical study of its lead product, PRT-201, in patients with end stage renal disease undergoing surgery for arteriovenous fistula creation.

Additionally, Proteon further bolstered its cash reserves by entering into an agreement with Novartis whereby Novartis has been granted an exclusive option to acquire Proteon following the successful completion of a Phase II clinical study of PRT-201 with a potential secondary right to a global license under pre-agreed conditions. Including the initial acquisition payment plus potential additional regulatory milestone payments, the deal with Novartis could exceed $550m.

The series B financing includes new investors, the MPM Bio IV NVS Strategic Fund and the Vectis Healthcare & Life Sciences Fund, along with existing investors TVM Capital, Skyline Ventures, Prism VentureWorks, Intersouth Partners and several of Proteon’s original angel investors.

Concurrent with the investment, Proteon also announced the addition of Steven Peter, managing director of MPM Capital, to the company’s board of directors. The combination of the Novartis option agreement and the closing of the series B financing is expected to allow Proteon to develop PRT-201 through Phase II.

Timothy Noyes, president and CEO of Proteon, said: Patients with kidney failure endure great suffering and frequent hospitalization due to vascular access complications. If successful, PRT-201 may improve medical outcomes and lower the associated cost of care. We greatly appreciate the continued support of our existing venture.