Pearl announces $69 million Series C financing round

Oct 20 2010

Pearl Therapeutics Inc., a privately held company developing clinically differentiated combination therapies for the treatment of highly prevalent chronic respiratory diseases, including chronic obstructive pulmonary disease (COPD), today announced a $69 million Series C financing.  The financing round was led by Vatera Healthcare Partners and included existing investors, Clarus Ventures, New Leaf Venture Partners and 5AM Ventures. With this capital infusion, Pearl will have raised a total of $102.5 million since 2007.

"The continued support from Pearl's existing investors and the new participation of Vatera Healthcare as the lead investor in this financing are testaments to the value of Pearl's innovative programs," said James W. Young, executive chairman at Pearl Therapeutics and venture partner at 5AM Ventures.  "The capital raised in this Series C financing will enable Pearl to complete the entire Phase 2b program for its lead product."

The capital will be used primarily to complete the Phase 2b clinical program for Pearl's lead product, PT003, a combination bronchodilator comprised of glycopyrrolate, a long-acting muscarinic antagonist (LAMA), and formoterol, a well-known, long-acting B2-agonist (LABA), delivered via a hydrofluoroalkane metered dose inhaler (MDI) for the treatment of patients with COPD.  Following the conclusion of the Phase 2b program, Pearl expects to initiate Phase 3 clinical trials in late 2012.

"We have initiated a comprehensive Phase 2b clinical program for PT003, including an ongoing Phase 2b dose-ranging study that compares PT003 against Spiriva® as well as four additional studies, which we plan to commence in the first half of 2011," said Howard B. Rosen, interim president and chief executive officer of Pearl Therapeutics.  "We look forward to leveraging the combined expertise of our dedicated employees, advisers, and venture investors, now including the Vatera Healthcare team, as Pearl advances into its next stage of development. Together, we will progress development of PT003, the only dual long-acting rapid bronchodilator LAMA-LABA combination product in an MDI formulation for the treatment of patients with COPD."

In connection with the financing, Vatera Holdings LLC managing director, Sundar Kodiyalam has joined the Pearl Board of Directors.  Additionally, Vatera Holdings executive-in-residence, Thomas Koestler, the former president of Schering-Plough Research Institute until its acquisition by Merck & Co., has been appointed as a Board observer.

"Vatera's mission is to support and grow emerging biopharmaceutical companies, specifically those addressing significant markets by offering novel solutions that improve treatment outcomes," said Sundar Kodiyalam. "Therapies to treat respiratory conditions are an area of high interest to Vatera and we believe Pearl's technology platform can lead to market-leading therapies for COPD. We look forward to working with Pearl's management team to build a great company."