Ceptaris Therapeutics raises $10M after FDA denial

Venture backers are giving Ceptaris Therapeutics another chance. Fresh from an FDA rejection of the small developer's cancer drug, Ceptaris has found $10 million in a Series D-1 round from Vivo Ventures, Palo Alto Investors, Burrill & Company, Aperture Venture Partners, Osage, BioAdvance and new backer Third Point.

Malvern, PA-based Ceptaris (formerly Yaupon) says that the financing round follows the FDA's Complete Response Letter to the company's submission for approval of its formulation of mechlorethamine to treat lesions on the skin from a type of cutaneous T-cell lymphoma called mycosis fungoides. With the new financing in hand, the company plans to work with regulators to address concerns in its application for approval of its topical gel version of the chemotherapy drug. The company didn't specify the reason for the FDA CRL.

"We believe that our proprietary mechlorethamine gel will be an important new treatment option and this latest round of financing provides Ceptaris additional capital for ongoing activities," said Stephen Tullman, President and CEO at Ceptaris. "We appreciate the commitment of all of our investors and welcome Third Point, a valued investor familiar with the management team from an earlier investment in Ception Therapeutics."

Ception, of course, provided an investment exit for Third Point when drugmaker Cephalon ($CEPH) scooped up the developer in 2010 for $100 million upfront and an option to buy all of Ception's shares for $250 million.

- here's the release