North Carolina-based Cempra Pharmaceuticals has raised a hefty $46 million in a third round of financing. The company is developing two antibiotics for multi-drug resistant bacterial infections. The round was led by Quaker BioVentures. Devon Park Bioventures also participated, along with original investors Aisling Capital, Intersouth Partners, investment banker Wistar Morris III and Teachers' Private Capital.
Cempra was founded in January 2006, and had raised a total of $32.4 million before this most recent round of financing. "We were founded on a library of macrolides licensed from Optimer pharmaceuticals on a license," explained Cempra CEO Prabha Fernandes in an interview with FierceBiotech. "From there we picked one molecule we thought would be very active--CEM-101. It turned out to be phenomenally active macrolide." The drug is being developed as both an oral and intravenous antibiotic. A Phase I trial is almost complete and the company expects to begin Phase II testing later this year.
Cempra's other lead candidate is CEM-102. "It has been approved elsewhere in the world, which takes away some of the development risks," notes Fernandes. The company already knows the drug will work against MRSA, and is preparing Phase II/III adaptive trials.
Quaker Bioventures and Devon Park Bioventures joined this round as new investors. Still, raising this kind of money was no walk in the park. "It was difficult, but we have a very prestigious existing investor group, and they helped us tremendously. No one on the team is green in the drug development area--everyone has done this before." Raising such a large round was a team effort, says Fernandes. "We have a good scientific advisory board, and a great management team and board. Everyone pitched in."
The funds will be used for the continued clinical development of CEM-101 for community-acquired bacterial pneumonia, CEM-102 for MRSA, and other preclinical stage, non-antibacterial macrolide programs. Cempra has just 12 employees and doesn't plan to substantially increase its workforce yet. The funding should last the company at least two and a half years. Fernandes says Cempra will be looking for partners to develop its antibiotics. "We'll be looking for partners early," she notes. While Cempra could develop its products and file an NDA, its expertise is in early stage research, and the company is not looking hire staff to commercialize its products.
- here's the release from Cempra