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VIVIA BIOTECH CLOSES ITS SECOND ROUND OF FUNDING FOR €7.2 MILLION.
The Spanish company Vivia Biotech is focused on drug development and personalized medicine in hematologic cancers like leukemia and multiple myeloma.Vivia has successfully closed its second financing round of €7.2 million.
The operation includes funding of €6 million in participatory loans by the Society for the Promotion and Economic Restructuring in Andalusia (SAU) on behalf of the Multiinstrument JEREMIE Fund contained in the Community Initiative Joint European Resources for Micro to Medium Enterprises in Andalusia and an additional equity investment by Bioanalítica Inversiones SL consisting of €1,250,000.
“This transaction is a milestone that sends a clear message to the market to opt for innovative projects with real added value, especially for biotech SMEs within the actual economic and financial situation that we are living in Spain,” says Andres Ballesteros, CEO Vivia Biotech. “Closing a deal of this volume endorses Vivia’s bet for innovation, and demonstrates the company’s potential and the capacity to attract funding when there is a solid project behind” he adds.
This new injection of capital will finance the commercialization of Vivia’s personalized medicine test for hematologic cancers. It will also enable the continued development of its two main drug candidates, one for the treatment of Non-Hodgkin Lymphoma, which is expected to begin clinical trials in patients later this year, and a second high-potential candidate for diabetes, the second line of research of the company. Vivia is in negotiations with pharmaceutical companies for potential collaborations to further the development of both drug candidates.
Meanwhile, Joan Ballesteros, President and Chief Scientific Officer of Vivia Biotech assures that “our personalized medicine test will help hematologists select the best treatment for each patient individually, and in many cases may improve the prospects of survival”. Mr. Ballesteros further illustrates that this funding “will enable making this world pioneer test a reality, a test that Vivia has developed in partnership with its scientific colleagues, the association of hematologists PETHEMA and health systems and patients, the latter of which being our greatest motivation”.
With this test of personalized medicine, the company aims to become an international benchmark in this field of medicine. “Starting sales of our first product will imply a radical change in the company, providing substantial revenues to ensure long-term viability of the project, and allowing access to sources of capital that were previously unavailable to a company dedicated only to research,” says Andres Ballesteros.
Vivia Biotech has signed collaboration agreements with American pharmaceutical multinationals for drug development and is currently negotiating a third agreement with a US company and an additional one with a national pharmaceutical. While the focus of Vivia in personalized medicine is Europe, where the company will market its tests directly, the executives expect a rapid expansion to the U.S., Latin America and the Asian market through partnership and licensing strategies.
Viva has recently signed the first national partnership in personalized medicine that connect the worlds of companies, medical specialists and the health systems. This alliance will enable the development of the personalized medicine tests and of pharmaco-economic studies associated with it. These tests are designed to improve patient care, reduce costs and maximize efficiency in the use of drugs and health system resources in the treatment of hematologic cancers, thus facilitating the adoption of the test by health systems.
Vivia Biotech raised 4 million Euros of seed capital investment at its launch in 2007 with venture capital funds Suan Biotech FCR and Ronda Vida FCR, managed respectively by Suanfarma Biotech SGECR and Clave Mayor SGECR, and ADE Capital Sodical SCR. Since its foundation Vivia Biotech has grown exponentially more than tripling this amount in R&D funding in Spain and the EU, thus quickly establishing itself as one of the leaders in the sector in Spain.
Global Institutional Investors has participated as financial advisor and investor, and firms Cuatrecasas Gonçalves Pereira, Garrigues and DLA Piper as legal counsels.
Download free the 2011 Venture Capital in Spain report (Spanish language), with the main figures and details of 246 deals. Also free access to 2010 VC report (Spanish language).