US-Israeli biotechnology start-up Chiasma Corporation has increased a debt offering to $5 million from $2 million, out of a total $6 million offering, according to a statement filed with the US Securities and Exchange Commission (SEC). The company originally planned to raise up to $4 million. Seven investors, whom the company did not disclose, invested in the offering.
Jerusalem-based Chiasma's current shareholders are 7 Health Ventures of Israel, and US funds MPM Capital LP, Arch Venture Partners, Hi-tech Group and F-2 Ventures. The company raised $44 million in its third financing round in November 2006, but was forced to forego some of the money when trials of its lead product failed to achieve the expected results.
Chiasma subsequently restructured and changed its business model. It is now developing technology for oral delivery of protein and peptide-based drugs that are available only by injection or intravenously. It also seeks new uses for existing drugs.
Chiasma's lead product is Octreolin, for the treatment of for the treatment of acromegaly, a hormonal disorder that results from an excess of growth hormone. Famous sufferers of the condition include President Abraham Lincoln, wrestler Andre the Giant who starred in "The Princess Bride", and James Bond villain Richard “Jaws” Kiel.
Chiasma has a cooperation agreement with Novartis AG (NYSE:NVS; LSE: NOV; SWX: NOVZ), which has rights to use the company's technology with its existing drugs.
Published by Globes [online], Israel business news - www.globes-online.com - on January 16, 2011
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