SAN DIEGO, Feb. 11, 2011 /PRNewswire/ -- Conatus Pharmaceuticals Inc. today announced the closing of a $20 million Series B Preferred Stock private placement financing. This financing was led by new investor, AgeChem Venture Fund of Montreal, Canada, and included participation by existing investors; Aberdare Ventures, Advent Venture Partners, Bay City Capital, Gilde Healthcare Partners, and Roche Venture Fund. Conatus will use the proceeds to advance the clinical development of CTS-1027, a novel clinical-stage drug candidate the Company has licensed from F. Hoffman-La Roche, Ltd. and is the subject of multiple Phase 2 clinical trials in hepatitis C (HCV)-infected patients.
As part of the financing, Louis Lacasse from AgeChem will join the Conatus Board of Directors. "We are very excited about joining such an elite group of investors to support the development of CTS-1027 which we believe could be a blockbuster drug for the treatment of HCV infections," said Louis Lacasse.
Continuing Board Directors are Paul Klingenstein from Aberdare Ventures, Shahzad Malik, M.D., from Advent Venture Partners, William Gerber, M.D., from Bay City Capital, and Marc Perret from Gilde Healthcare, and independent directors, David Hale and Hal Van Wart, Ph.D. Steven J. Mento, Ph.D., Co-founder, President and CEO of Conatus, will continue as Chairman of the Board.
Concurrent with the first closing of the Series B financing, Conatus also converted promissory bridge notes into Series B preferred stock.
The Series B financing will remain open for an additional period as other potential investors conclude their diligence.
"This financing enables Conatus to expand the clinical development of CTS-1027 as a cell-based antiviral for the treatment of HCV infections. We believe that CTS-1027 represents a novel approach to treating HCV disease and look forward to developing this drug candidate in the HCV-null responder population in combinatio