PureTech's resTORbio Raises $40 Million
30 November 2017
PureTech Health plc
PureTech's resTORbio Raises $40 Million from Leading Biotech and Institutional Investors
This financing brings the total capital raised by this affiliate in 2017 to $65 million which will be used to advance its novel immunotherapy for aging-related conditions
PureTech Health plc (LSE: PRTC), an advanced, clinical-stage biopharmaceutical company, announced today that resTORbio, Inc. (resTORbio), an affiliate of PureTech Health, completed an oversubscribed $40 million equity round led by OrbiMed and including participation from Fidelity Management & Research Company, Rock Springs Capital, Quan Capital and Nest Bio. Together with a $25 million Series A financing that was completed earlier this year, the current financing brings the total 2017 investments in resTORbio to $65 million.
Daphne Zohar, Co-Founder and Chief Executive Officer of PureTech Health, said: "We are extremely pleased with the progress resTORbio has made since we launched the programme, including the achievement of key clinical milestones. Our late-stage clinical pipeline includes both wholly-owned programmes as well as those we advance in collaboration with leading equity and/or pharma partners. The latter category, which includes resTORbio, represents just one example of the value we have been building at PureTech Health."
The additional capital is expected to be used to further advance clinical development of resTORbio's novel programme for aging-related diseases and conditions that selectively targets TORC1, a key pathway involved in aging. resTORbio is currently conducting a Phase 2b clinical study designed to assess the safety, tolerability and efficacy of resTORbio's lead programme in reducing respiratory tract infections (RTIs) in the elderly, with top-line results expected in the second half of 2018.
The full text of the announcement from resTORbio is as follows:
resTORbio Raises $40 Million to Advance Selective TORC1 Inhibitors for Aging-Related Diseases and Conditions
BOSTON, Massachusetts, November 30, 2017 - resTORbio, Inc., a clinical-stage biopharmaceutical company focused on the development and commercialisation of novel therapeutics for the treatment of aging-related diseases, today announced the completion of an oversubscribed $40 million Series B financing round. The round was led by OrbiMed and included participation from Fidelity Management & Research Company, Rock Springs Capital, Quan Capital and Nest Bio. This financing brings the total capital raised this year to $65 million, including a $25 million Series A financing that was completed earlier this year. resTORbio plans to use the proceeds to advance the development of RTB101, a selective Target of Rapamycin Complex 1 (TORC1) inhibitor, through a Phase 2b clinical trial and, if successful, into a Phase 3 clinical programme, as an immunotherapy to reduce the incidence of respiratory tract infections (RTIs) in elderly subjects. The funds are also expected to be used to expand the programme into a Phase 2 clinical trial in an additional aging-related indication.
"We appreciate the support of these seasoned life sciences investors and their confidence in the potential of our TORC1 programme to treat diseases related to aging," said Chen Schor, President and CEO of resTORbio. "RTB101, our selective inhibitor of TORC1, has been demonstrated to enhance immune function in elderly individuals in a randomised, placebo-controlled, phase 2 clinical trial. We believe our approach may provide an opportunity to address multiple aging-related diseases beyond our initial indication for reducing the incidence of RTIs in the elderly. We look forward to reporting data from our Phase 2b clinical trial in the second half of 2018 and to expanding the programme into additional indications."
RTB101, an orally-administered, potent TORC1 inhibitor, is a first-in-class immunotherapy designed to address immunosenescence, the decline in immune function that occurs with age. RTB101, alone and in combination with everolimus, is being evaluated in a Phase 2b clinical trial to reduce the incidence of RTIs in elderly individuals at risk of mortality or morbidity due to RTIs which are caused by a broad spectrum of pathogens. Currently, there are no therapies approved by the US Food and Drug Administration (FDA) that improve immune function in the elderly and thereby reduce the incidence of RTIs.
In connection with the financing, Jonathan Silverstein, Partner and a Co-Head of Global Private Equity at OrbiMed, will join the resTORbio board of directors. "We are excited to be investing in what we believe is the leading company addressing aging-related diseases and conditions. We look forward to contributing to resTORbio's efforts to advance and expand its programme," stated Jonathan Silverstein.
About Respiratory Tract Infections in the Elderly
The reduced ability of elderly patients to detect and fight infections is most commonly manifested in their susceptibility to RTIs and the negative effects such infections have on their overall health. According to the US Census Bureau, RTIs are the fifth leading cause of death in people age 85 and over and the seventh leading cause of death in people age 65 and over. RTIs also result in high healthcare costs for the elderly population and burden the healthcare system. The majority of RTIs are caused by viruses for which there are no FDA-approved therapies. As the elderly represent the fastest growing population in all regions of the world, there is significant unmet medical need for innovative therapeutic options to reduce the incidence of RTIs by enhancing the function of the aging immune system.
About TORC1
Mechanistic target of rapamycin (mTOR) is a protein serine/threonine kinase that regulates the process of aging and aging-related diseases and conditions, via two complexes: TORC1 and TORC2. TORC1 inhibition has been found to have many beneficial effects on aging-related diseases and conditions, while TORC2 inhibition has been associated with adverse events including hyperglycaemia and hyperlipidaemia. The TORC1 inhibitor programme being developed by resTORbio may, therefore, have therapeutic potential to ameliorate multiple aging-related diseases without the undesirable side effects associated with TORC2 inhibition.
About resTORbio
resTORbio, Inc. is a clinical stage biopharmaceutical company focused on the development and commercialisation of novel therapeutics for the treatment of aging-related diseases. resTORbio's lead programme is targeting the target of rapamycin complex 1 (TORC1) pathway to treat aging-related diseases and conditions with an initial focus on conditions caused by immunosenescence, the decline in immune function that occurs during aging. resTORbio's lead product candidate, RTB101, alone or in combination with everolimus, is in a Phase 2b clinical trial to evaluate its potential in reducing the incidence of respiratory tract infections (RTI) in elderly subjects at increased risk of RTI-related morbidity and mortality. resTORbio's lead programme is supported by two Phase 2a clinical studies from which promising safety and efficacy signals were observed in almost 500 elderly subjects. resTORbio is pursuing a pragmatic clinical development plan to address areas of key unmet medical need in the aging population. For more information, please visit www.restorbio.com. resTORbio is an affiliate of PureTech Health.
Ownership Information and Other Required Disclosures
$40 million of Series B Preferred Stock was issued in the Series B Financing representing approximately 17.3% of resTORbio calculated on a diluted basis1 and approximately 16.0% of resTORbio calculated on a fully-diluted basis2. The post money fully-diluted valuation of resTORbio is $250 million. PureTech Health's ownership value of resTORbio was not reflected in the last reported value of the PureTech Health's growth stage holdings, which was calculated and reported as of 31 December 2016, prior to initiation of this programme.
Earlier this year, PureTech Health funded $19 million of resTORbio's Series A Financing and, together with its founder's shares, PureTech Health owns approximately 44.2% of resTORbio calculated on a diluted basis2 and approximately 40.9% of resTORbio calculated on a fully-diluted basis1 following the closing of the Series B Financing.
(1) This calculation includes issued and outstanding shares as well as outstanding options to purchase shares, but excludes unallocated shares authorised to be issued pursuant to equity incentive plans.
(2) This calculation includes issued and outstanding shares, outstanding options to purchase shares, and unallocated shares authorised to be issued pursuant to equity incentive plans
About PureTech Health
PureTech Health (PureTech Health plc, PRTC.L) is an advanced, clinical-stage biopharmaceutical company developing novel medicines targeting serious diseases that result from dysfunctions in the nervous, immune, and gastrointestinal systems (brain-immune-gut or the "BIG" axis), which together represent the adaptive human systems. PureTech Health is at the forefront of understanding and addressing the biological processes and crosstalk associated with the BIG axis. By harnessing this emerging field of human biology, the Company is pioneering new categories of medicine with the potential to have great impact on people with serious diseases. PureTech Health is advancing a rich pipeline of innovative therapies that includes two pivotal stage programmes, multiple human proof-of-concept studies and a number of early clinical and pre-clinical programmes. PureTech's rich research and development pipeline has been advanced in collaboration with some of the world's leading scientific experts, who along with PureTech's team of biopharma pioneers, entrepreneurs and seasoned Board, identify, invent, and clinically de-risk new medicines. With this experienced team pursuing cutting edge science, PureTech Health is building the biopharma company of the future focused on improving and extending the lives of people with serious disease. For more information, visit www.puretechhealth.com or connect with us on Twitter @puretechh.
Forward Looking Statement
This press release contains statements that are or may be forward-looking statements, including statements that relate to PureTech's future prospects, developments and strategies. The forward-looking statements are based on current expectations and are subject to known and unknown risks and uncertainties that could cause actual results, performance and achievements to differ materially from current expectations, including, but not limited to, those risks and uncertainties described in the risk factors included in the regulatory filings for PureTech Health. These forward-looking statements are based on assumptions regarding the present and future business strategies of the company and the environment in which it will operate in the future. Each forward-looking statement speaks only as at the date of this press release. Except as required by law and regulatory requirements, neither PureTech Health nor any other party intends to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise.
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.
Contact:
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PureTech Health |
FTI Consulting |
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Allison Mead Talbot +1 617 651 3156 |
Ben Atwell, Rob Winder +44 (0) 20 3727 1000 |
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