ExonHit Therapeutics raises ?30 million in round three

Investee Company – ExonHit Therapeutics (France)

Investee Company Business Type – Develops new products for the treatment of cancer and neurological disorders together with their accompanying diagnostic tools

Type of Financing – Development

Equity Providers – Dresdner Kleinwort Capital, Danske Bank, LCF E. de Rothschild, Sudinnova, BNP-Paribas’ Banexi Venture III, CDC Innovation, AGF Private Equity, Oxford Bioscience Partners and Sofinnova Partners

Equity Leader (Individual) – Daniel Green, Dresdner Kleinwort Capital

Debt Providers – N/A

Debt Type – N/A

Debt Leader (Individual) – N/A

Equity Amount – €30 million

Total Deal Value – €30 million

Other Advisors – N/A

Comments – French post-genomics company ExonHit Therapeutics has announced the completion of a €30 million third round funding. The company will use the fresh capital to target the advancement of its therapeutic pipeline. The round attracted a range of new international investors including Dresdner Kleinwort Capital, Danske Bank, LCF E. de Rothschild and Sudinnova. Existing investors comprised of BNP-Paribas’ Banexi Venture III, CDC Innovation, AGF Private Equity, Oxford Bioscience Partners and Sofinnova Partners.

The company has invented DATAS (Differential Analysis of Transcripts with Alternative Splicing), a unique proprietary qualitative gene profiling technology that allows the detection of disease-relevant changes in mRNA sequences resulting from alternative RNA splicing. The goal is to be able to provide innovative molecules, RDCs (Ready for Development Compounds), to pharmaceutical companies, and in addition enable its partners to develop new and more effective drugs.

Currently the company has four RDCs under development: EHT 101, EHT 102, EHT 201 and EHT 202. These molecules are targeted at cancer and neurodegenerative diseases. The capital injection will allow ExonHit to commence the clinical development of two of the companies RDCs, EHT-201 and EHT-202, as well as financing the development of additional therapeutics and diagnostics from the DATAS technology.

Daniel Green, a director at Dresdner Kleinwort Capital, said: “The company has demonstrated the capabilities to generate revenue through services and licensing agreements based on its unique DATAS technology to major pharmaceutical partners, while developing in parallel its own therapeutic products which promise to deliver significant value to the company’s shareholders”.

ExonHit Therapeutics completed a second round of funding just over a year ago in which it raised €14 million. The company was founded in 1997 and has its headquarters in Paris with a US subsidiary based in Gaithersburg, Maryland. The company expects to make its first profits in 2004.