PanOptica completes $30 million Series A financing

Jan 4 2011

PanOptica, Inc., a private biopharmaceutical company focused on licensing and developing innovative ophthalmology therapies, today announced that it has raised $30 million in a Series A financing. This round was led by SV Life Sciences and Third Rock Ventures.

The completion of Series A financing coincides with the company's successful licensing of exclusive worldwide ophthalmic rights to PAN-90806 from OSI Pharmaceuticals, Inc., a wholly owned subsidiary of Astellas US Holding, Inc., which is part of the Astellas US group of companies (Astellas) in exchange for up-front cash, equity interest in PanOptica, and potential future milestones and royalties. Financial terms of the agreement have not been disclosed. PAN-90806 is a pharmacologically unique small-molecule selective inhibitor of VEGF (vascular endothelial growth factor) that shows potential as a topical (eye drop) treatment for neovascular age-related macular degeneration (neovascular AMD).

"We're thrilled to have completed our Series A financing, which enables us to advance PAN-90806 through Phase 2 clinical trials, complete a licensing deal for a second compound and develop it through Phase 2, and select a third asset, which we're actively seeking," said Paul Chaney, co-founder, president, and CEO of PanOptica. "We appreciate the confidence of our financing partners – two of the premier biotechnology venture capital firms – in our industry expertise and our ability to successfully develop a portfolio of innovative therapies."

PanOptica also announced the creation of a board of directors chaired by David Guyer, M.D., founder and former CEO of Eyetech Pharmaceuticals and currently partner of SV Life Sciences. Additional board members include Lutz Giebel, Ph.D., managing partner of SV Life Sciences; Kevin Starr, partner of Third Rock Ventures, and Chaney. Two independent board members will be appointed.

Anti-VEGF therapy is the standard of care for neovascular AMD, but existing treatments require regular physician-administered injections into the eye. An eye-drop formulation has the potential to lower the risk of injection-related complications and significantly reduce the burden on patients, their families and ophthalmology practices. PanOptica expects to begin a Phase I clinical trial of PAN-90806 in 2012. The molecule has previously been studied in human trials for oncology indications and has demonstrated a favorable safety, toxicology and pharmacokinetic profile.

"We believe that reducing the treatment burden of anti-VEGF therapy is the next major advance in the treatment of neovascular AMD," said Dr. Guyer. "Given its unique pharmacological profile, PAN-90806 has the potential to become the first anti-VEGF therapy administered topically by eye drops instead of by intravitreal injection. PanOptica has the experience and capabilities needed to develop this significant breakthrough for ophthalmologists and their patients."

"As a company-building investment firm, we are pleased to support an organization that has such extensive and complementary experience in ophthalmology, bringing together the commercial expertise of Paul Chaney with the scientific acumen of Dr. Martin Wax," said Starr. "We look forward to working with PanOptica to build a portfolio of innovative ophthalmology compounds."