Altheos to fund development of ATS907 Rho-kinase inhibitor with completed $20M Series A financing

Apr 5 2010

Altheos, Inc., a privately held early-stage biopharmaceutical company, announced today that it has completed a $20 million Series A financing led by Bay City Capital.  New investors Novo A/S, Canaan Partners, Life Science Angels and Atheneos Capital also joined the round.  The financing will be used primarily for the development of ATS907, a selective Rho-kinase inhibitor Altheos licensed from Japanese pharmaceutical company Asahi Kasei Pharma. The license also includes a series of highly active compounds (AK138 series) specifically for topical treatment for glaucoma.

"No therapeutics based upon new mechanisms-of-action have been approved for glaucoma in 15 years.  ATS907 is in a new class of therapies that may provide a much needed alternative for the growing aging population who are most afflicted by the disease," said Henry Hsu, M.D., CEO of Altheos.  "The strong interest in the development candidate ATS907 by top investors is a testament to its potential as well as those within the AK138 series which Altheos has licensed."

As part of the financing, Lester Kaplan, Ph.D., a member of Bay City Capital's scientific advisory board and former President, Research and Development, and Board Member at Allergan, Inc. will be joining the company's board as Chairman. The board will be further expanded to include Rob Hopfner of Bay City Capital, Peter Bisgaard of Novo A/S and Wende Hutton of Canaan Partners.

"Rho-kinase inhibitors like ATS907 target a new mechanism in glaucoma with the potential to significantly improve upon control of the disease," said Dr. Kaplan. "ATS907 and related analogues were specifically designed to have properties that make it optimal for ocular administration and with an improved therapeutic index compared to other Rho-kinase inhibitors in development.  The pre-clinical studies indicate important differentiators from existing therapies, both in safety and efficacy."

"The market for glaucoma is expected to increase from 60 million people today by nearly 30 percent to 80 million by 2020," said Hutton. "We see significant potential for ATS907, as it acts against a new target in the eye that could prevent further vision loss and unnecessary side effects."