Healthcare Industry News: KAI Pharmaceuticals
News Release - May 2, 2006
KAI Pharmaceuticals Completes $35 Million Series B FinancingFinancing to Fund Broad Clinical Pipeline
SOUTH SAN FRANCISCO, Calif.--(HSMN NewsFeed)--May 2, 2006--KAI Pharmaceuticals, Inc., a drug discovery and development company, announced today the completion of a $35 million Series B private equity financing, bringing the total amount raised since inception to $63 million. Proceeds from the Series B financing will be used primarily to fund KAI's research and development pipeline of protein kinase C (PKC) therapeutics targeted at a range of diseases including acute myocardial infarction, stroke and other ischemic conditions, angiogenesis (such as age-related macular degeneration), and neuropathic and inflammatory pain.
The financing was led by new investors Investor Growth Capital, Inc. ("IGC") and Aberdare Ventures. Also participating in the round were the company's existing investors Skyline Ventures, InterWest Partners, Intersouth Partners, Delphi Ventures, Thomas Weisel Venture Partners, and MDS Capital. In conjunction with the financing, Curt H. LaBelle, M.D., from IGC, and Daniel L. Kisner, M.D., from Aberdare Ventures, will join KAI as new members of the Board of Directors.
"We are extremely pleased with the quality of our new investors and with the ongoing support of our existing investors," said Steven P. James, president and CEO of KAI Pharmaceuticals. "This financing, at an increased valuation, and funding from our recent collaboration with Daiichi-Sankyo, position the company to meet its primary development goals, including the filing of an IND for at least one program each year through 2008. In addition, we are fortunate to have Curt and Dan join the KAI Board, bringing with them a strong combination of financial, medical, product development, and operating experience."
"We are excited to participate in what we believe is a very bright future for KAI," said Curt H. LaBelle, M.D. of IGC. "KAI's ability to selectively activate or inhibit specific enzymes within the PKC family represents a significant advancement in developing new methods to treat a host of significant diseases that are poorly treated by existing therapies. PKCs are known to play a fundamental role in the pathophysiology of major diseases, and we share KAI's vision for building a preeminent biotech company with a pipeline of important drugs based upon this innovative technology."
Daniel L. Kisner, M.D., of Aberdare Ventures, stated, "KAI's leadership team has a strong track record both in advancing promising research into the clinic and in creating some of the industry's most innovative R&D collaborations. We are proud to be a part of this team and look forward to continuing success at KAI."
KAI Pharmaceuticals' lead product, KAI-9803, is a selective delta PKC inhibitor designed to reduce ischemia and reperfusion injury as an adjunct to current treatments for acute myocardial infarction. The company recently completed enrollment of a 150 patient Phase I/II clinical trial for KAI-9803 to assess safety and efficacy in heart attack patients. Trial results are anticipated later this year. In December of 2005, KAI signed a collaboration and license agreement with Daiichi-Sankyo Co., Ltd. worth up to $340 million in upfront, research, and milestone payments for the development and commercialization of KAI-9803 in two initial indications.
KAI Pharmaceuticals is a privately held, venture-backed drug discovery and development company with preclinical and clinical programs in acute cardiovascular and other diseases representing unmet medical needs. The company has applied its core expertise in the biology of PKC to develop highly potent and selective inhibitors and activators for each of the PKC isozymes for the treatment of a broad array of human diseases. KAI has received Fast-Track designation from the FDA for its lead compound, KAI-9803, which has recently completed a Phase I/II clinical trial to assess safety and efficacy in treating reperfusion injury in acute myocardial infarction. KAI is based in South San Francisco, California, and can be found online at www.kaipharma.com.
Source: KAI Pharmaceuticals
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