Coley completes $60 million private placement

Coley Pharmaceutical Group at the beginning of November announced the completion of a $60 million private placement. The company, which has bases in Massachusetts, Ottawa and Hilden, Germany, focuses on the development of immunotherapeutics for the treatment of cancer, allergy, asthma and infectious diseases. Coley has products in each of these therapeutic areas in Phase I or Phase II clinical trials at present and plans to initiate eight new clinical studies relating to cancer and other conditions in the next 12 to 18 months. Part of the proceeds of this latest fund raising will support this clinical evaluation programme. In parallel, Coley intends to continue building a product discovery platform based around human cell-based assays, which screens for novel olignucleotides with immune stimulating or modulating effects. The balance of the new capital will go to strengthen Coley’s R&D infrastructure at each of its three operations. On the back of the clinical trials now in progress, Coley hopes to form additional collaborations with major pharmaceuticals groups worldwide.

The lead investor in the private placement was DWS Investment, part of the Deutsche Bank Group. Other participants investing in Coley for the first time included DVG, which was advised by AP Asset Management, Commerzbank Private Equity, Bayview 2000 and Global Life Science Partners. Existing investors TVM Techno Venture Management, QIAGEN, Alpinvest (now NIB Capital) and Alafi Capital increased their commitments to Coley via the placement.