The $27.6 million was secured in a private placement led jointly by new investors Atlas Venture and Index Ventures. Current investors Bio Fund, Dansk Kapitalanlaeg, Danske Bank and QueQuoin Holdings also participated in the financing.
The proceeds from the offering will enable Egalet to take its leading proprietary heart diseases and pain management drug candidates through final pivotal studies. The company has four products in clinical development, two of which are entering into late-stage pivotal studies.
Furthermore, the proceeds will be used to strengthen Egalet’s product pipeline by leveraging its Egalet and Parvulet technologies. According to the company, these oral controlled release technologies offer a unique platform for the development of more advanced therapies.
“We are very excited about participating in this financing round. The company has made great strides in developing an attractive portfolio from their controlled-release technology. We believe this foundation will enable Egalet to evolve into a global player in the drug delivery sector,” commented Francesco de Rubertis of Index Ventures.
Concurrent with the closing of the financing, Seppo Makinen, senior partner at Bio Fund, was appointed chairman of the board of directors. In addition, Dr Regina Hodits of Atlas Venture and Francesco de Rubertis of Index Ventures will take seats on the board.