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| Proteon CEO Timothy Noyes |
When Novartis ($NVS) walked away from a $500 million buyout option for Proteon Therapeutics, Timothy Noyes, the biotech's CEO, didn't panic, keeping faith that his company could go it alone with the help of its investor syndicate and a promising vascular drug. Now, with $45 million in venture commitments under its belt, Proteon is set to roll into a late-stage study for its top candidate, with no need for Big Pharma help.
Led by new investor Abingworth, Proteon's Series D includes a $25 million first tranche that will fund a Phase III trial of PRT-201, the biotech's lead prospect. New backers Deerfield Management and Pharmstandard pitched in on the round, joined by existing investors including TVM Capital, Skyline Ventures and Intersouth Partners.
PRT-201 is a synthetic enzyme that can help dilate arteries and veins, and the biotech is developing it as a complementary therapy for patients who undergo vascular access surgery. In order to make hemodialysis easier, surgeons often create a vein-to-artery pathway called an arteriovenous fistula (AVF), and PRT-201 is designed to keep vessels open and blood flowing in ensuing weeks.
Back in 2009, in the middle of a Phase II study on the drug, Novartis stepped in with an offer to buy Proteon for up to $550 million, depending on the trial's results. In that study on 151 chronic kidney disease patients undergoing AVF procedures, PRT-201 was able to prolong the need for angioplasty and reduce the amount of time between the creation of the pathway and its use in dialysis, the company said, but, in the ensuing months, Proteon and Novartis were unable to settle on a final price tag, and the drugmaker walked away from the table in September.
Now, out on its own with cash in hand, Proteon plans to kick off its Phase III study this summer, targeting the same patient population and endpoints as in its midstage trial, Noyes said.
"AVF failure causes great suffering for hemodialysis patients, resulting in repeat surgical and endovascular procedures and increased cost of care," Noyes said in a statement.
The biotech isn't in the market for another Big Pharma partner, the CEO said, instead planning to follow through on its late-stage plans and resurvey the deal landscape once it has some Phase III data on PRT-201. But the biotech can afford to be bullish, he said, and if Proteon doesn't like the offers it sees, Noyes believes it can eventually commercialize the drug on its own.
- read the statement