Lotus Tissue Repair to develop DEB protein replacement therapy with $26 million Series A financing

Jun 30 2011

Lotus Tissue Repair, Inc. today announced the closing of a $26 million Series A financing led by Third Rock Ventures. Proceeds of the financing will be used to advance the company's proprietary recombinant collagen type VII (rC7) technology as the first and only protein replacement therapy in development for the treatment of dystrophic epidermolysis bullosa (DEB), an orphan disease that causes devastating skin blisters, morbidity and early mortality. There are currently no approved treatments for DEB, which results from mutations in the gene encoding collagen type VII. Future applications of the company's technology include treatments for dermatologic conditions in which rC7 may play an important role in accelerating chronic wound healing, such as diabetic foot ulcers, venous stasis ulcers and similar conditions.

“The Lotus Tissue Repair approach directly addresses the primary driver of the disease - deficiency or dysfunction in collagen type VII - and could mark a paradigm shift in long-term management of the disease”

"The Lotus Tissue Repair approach directly addresses the primary driver of the disease - deficiency or dysfunction in collagen type VII - and could mark a paradigm shift in long-term management of the disease," said Mark de Souza, Ph.D., founding chief executive officer of Lotus. "More broadly, our rC7 technology shows promise across a range of dermatologic conditions including diabetic foot ulcers, venous stasis ulcers and similar conditions where collagen type VII could help accelerate chronic wound healing. We look forward to advancing our lead program and working closely with our scientific co-founders and their research teams."

Dr. de Souza, James Fordyce and Philip Reilly, M.D., J.D co-founded the company along with the inventors of the company's proprietary rC7 technology, Mei Chen, Ph.D. and David Woodley, M.D. Drs. Chen and Woodley are professors of dermatology at the University of Southern California and the world's leading experts in rC7 as a protein replacement therapy.

Lotus Tissue Repair also announced today an exclusive license with the University of Southern California (USC) for the patent portfolio and technology surrounding the research of Drs. Chen and Woodley. This license includes their groundbreaking work in DEB, which has been described in the peer-reviewed scientific publications Nature Medicine and Molecular Therapy, as well as rC7 as a potential therapeutic for chronic wound healing and bone repair indications. Preclinical studies to-date have demonstrated that the rC7 as a protein replacement therapy is potent, long-lasting and specifically homes to wounded skin in multiple preclinical models.

Lotus Tissue Repair's board of directors includes Dr. de Souza, Mr. Fordyce, founding chairman and chief financial officer of the company, Mr. Neil Exter, partner at Third Rock Ventures and Dr. Reilly, interim chief medical officer of the company and venture partner at Third Rock Ventures. Joining Drs. Chen and Woodley as scientific advisors to the company is Barbara A. Gilchrest, M.D., immediate past chair of the Department of Dermatology at the Boston University School of Medicine.

"Third Rock Ventures is dedicated to launching exceptional life sciences companies developing innovative therapies that can make a difference in patients lives," said Dr. Reilly. "Lotus Tissue Repair's innovative rC7 technology is disruptive and directly targets the driver of DEB, a rare genetic disease. We are excited to bring together this world-class group of researchers and entrepreneurs to advance what could be a transformative treatment."