Carlyle backs Essential refinancing and other funding news

Private equity group Carlyle has joined forces with other investors on a €900 million-plus recapitalisation of UK drugmaker Essential Pharma that will provide funds to expand its product portfolio and expand overseas.

The financing from Carlyle's AlpInvest unit and Sixth Street will go towards building Essential's "diversified portfolio and late-stage pipeline across established and rare disease medicines," according to a company statement, which points to a continuation of a strategy of growth by acquisition under chief executive Emma Johnson, who took the helm last year.

Since the start of this year, Essential has bought Renaissance Pharma and its clinical-stage neuroblastoma therapy Hu14.18 – the company's first development-stage asset – and acquired rights to Alzheimer's disease therapy Reminyl (galantamine) from Johnson & Johnson and Teva's Colobreathe (colistimethate sodium) for respiratory infections in cystic fibrosis patients.

Essential was acquired in 2019 by Swiss private equity fund Gyrus Capital and specialises in low-volume but hard-to-manufacture generic and branded medicines. Earlier this year, Gyrus was rumoured to be exploring a possible sale of the business, but the recapitalisation will be achieved through a Gyrus "continuation vehicle" led by AlpInvest and with Sixth Street providing a €300 million strategic financing facility.

"This transaction provides us with substantial additional firepower, strengthening our ability to deliver essential medicines to patients who need them most," said Johnson.

"By moving into new geographical markets and building on our diversified portfolio and late-stage pipeline across our key therapeutic areas, we can expand our reach to help underserved patient populations across the globe."

Other financings

In other biopharma financing news this week, there were sizeable rounds for Noema Pharma, Angitia Biopharma, Citryll, and Veradermics.

First up, Swiss start-up Noema Pharma has raised CHF 130 million ($147 million) in an expanded Series B that will support four clinical trials across three drug candidates for central nervous system disorders.

The drug candidates – all licensed from Roche – include mGluR5 negative allosteric modulator basimglurant (NOE-101) in phase 2 for severe pain in trigeminal neuralgia (TN) and seizures in tuberous sclerosis complex (TSC), along with PDE10a inhibitor gemlapodect (NOE-105) in a phase 2b study in Tourette's syndrome, and NOE-115, a broad-spectrum monoamine modulator in a phase 2 trial for vasomotor symptoms and other symptoms of menopause.

EQT Life Sciences led the round's expansion alongside continued support from existing investors, Forbion, Jeito Capital, Sofinnova Partners, Gilde Healthcare, Polaris Partners, Invus, and UPMC Enterprises.

Woodland Hills, California-based biotech Angitia Biopharmaceuticals has raised $120 million to advance three drug programmes for musculoskeletal disorders in a Series C led by Bain Capital Life Sciences.

The trio includes two bone-building bispecific antibodies – sclerostin and DKK1-targeting AGA2118 and AGA2115 for osteoporosis and brittle bone disease (osteogenesis imperfecta), respectively – and a 'biologic' codenamed AGA111 designed to promote spinal fusion in patients with degenerative disc disease. AGA111 is in a phase 3 trial, while AGA2118 is in phase 2 and AGA2115 is in phase 1.

Janus Henderson, OrbiMed, 3H Health Investment, Yonghua Capital, Legend Capital, and Elikon Venture also participated in the financing.

Dutch biotech Citryll has closed an oversubscribed second round, raising €85 million (around $89 million) that will fund clinical development of CIT-013, a monoclonal antibody targeting neutrophil extracellular traps (NETs) involved in immune-mediated inflammatory diseases.

The company says NETs are web-like structures composed of DNA, histones, and antimicrobial proteins, released by neutrophils to trap and degrade pathogens that are produced in excessive quantities in inflammatory conditions. Citryll recently completed a phase 1 trial of CIT-013 in rheumatoid arthritis with phase 2a studies in that indication, as well as skin disorder hidradenitis suppurativa.

The financing was co-led by Johnson & Johnson Innovation – JJDC, Forbion, and Novartis Venture Fund, with backing from Pureos Bioventures and existing investors BioGeneration Ventures, Seventure Partners, BOM, Curie Capital, and Citryll's founders.

Finally this week, New Haven, Connecticut start-up Veradermics raised $75 million in Series B financing that will support a phase 2/3 trial of its hair loss therapy VDPHL01.

VDPHL01 is a non-hormonal oral therapeutic – with a confidential mechanism of action – which is in development for the treatment of androgenetic alopecia (AGA), also known as pattern hair loss (PHL), in men and women. The first patient in the phase 2/3 trial was recently dosed with the drug and Veradermics aims to enrol 480 patients, with results due in the first half of 2025.

The financing was led by Suvretta Capital Management and included new investors Longitude Capital, Surveyor Capital, Osage University Partners, and PhiFund, alongside existing investors, JW Childs Associates, Connecticut Innovations, and Biohaven chief executive Vlad Coric.