Newco Vtesse raises $25M for Niemann-Pick therapies

Vtesse Inc. (Gaithersburg, Md.) spun out of Orphan drug accelerator Cydan Development Inc. (Cambridge, Mass.) and raised $25 million in a series A round to study treatments for Niemann-Pick type C disease. New Enterprise Associates (NEA) led the round, with participation by Pfizer Venture Investments; Lundbeckfond Ventures; Bay City Capital; and Alexandria Venture Investments.

The newco also obtained worldwide rights from NIH to cyclodextrin, delta-tocopherol, and derivatives of tocopherol, alone or in combination, to treat lysosomal storage diseases (LSDs). The deal includes VTS-270 2-hydroxypropyl-b-cyclodextrin ( HPBCD), a small molecule targeting cholesterol and sphingolipid storage. NIH is conducting a Phase I trial of VTS-270 to treat Niemann-Pick type C. The transfer is part of a collaborative research agreement among Vtesse, NIH's National Center for Advancing Translational Sciences (NCATS) and the Eunice Kennedy Shriver National Institute of Child Health and Human Development (NIHCD). Vtesse will assume responsibility for further development of VTS-270. Financial terms were not disclosed. ...