Chiasma Ltd., which develops oral drugs previously only available through injection, raised $38.5 million to fund a late-stage trial of the Octreolin growth- disorder treatment and a study of a second medicine.
The equity financing round was led by Abingworth, which invests in the health-care sector, and current investor MPM Capital, the Jerusalem-based company said in a press release. The late-stage trial should be completed in the second quarter of 2013, Chiasma said.
Acromegaly, known in children as gigantism, is a rare condition in which overproduction of growth hormone causes the face to become coarse and the hands and feet to swell. About 20,000 patients are eligible for Octreolin treatment in the U.S. and Europe, with an additional 10,000 patients in the rest of the world, according to Chiasma.
The U.S. Food and Drug Administration granted orphan-drug designation for Octreolin, meaning the product would get seven years of market exclusivity if approved, Chiasma said. Chiasma is also developing an oral treatment for a chronic kidney disease complication, it said.
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