Intarcia Forgoes Partnerships, Raises $210M In Equity And Debt Instead
This article was originally published in The Pink Sheet Daily
Rather than partner its implantable formulation of exenatide, the biotech turned to hedge funds and other non-traditional investors for the year’s largest round of private capital. The deal enables Intarcia to begin Phase III trials on lead program ITCA-650 for type 2 diabetes, which it believes could be a blockbuster.
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San Francisco-based VC also is an investor in a $200 million Series DD funding for type 2 diabetes-focused Intarcia Therapeutics. Foresite will use the same investment strategy for its second fund, seeking late-stage investments in proven technologies with strong management and promising market positions.
Despite difficulties financing late-stage trials, several private companies are expecting Phase II and III data that should help shape public investor sentiment this year. Familiar compounds in new guises lead the way.
Biopharmaceutical companies have been outsourcing R&D activity to CROs for a while, but neither they nor CROs have sorted out which side should bear the burden of what kind of risk and how to best structure operations.