Sanofi Ventures Leads $5.4M Seed Round in Veralox Therapeutics to Advance 12-LOX Inhibitor Development

On September 9, 2019, VCBeat (WeChat ID: vcbeat) learned from foreign media reports that biopharmaceutical company Veralox Therapeutics (“Veralox”) announced the completion of a $5.4 million seed financing round.

This financing round was led by the JDRF T1D Fund (JDRF), Sanofi Ventures, the Virginia Tech Carilion Innovation Fund, and the VTC Seed Fund, with participation from the Maryland Momentum Fund, the University of Vermont Health Network, and TEDCO.

It is reported that Veralox will use the funds from this financing round to develop 12-lipoxygenase (12-LOX) inhibitors for the treatment of type 1 diabetes (T1D), heparin-induced thrombocytopenia (HIT), and associated complications linked to 12-LOX.

HIT is a condition characterized by thrombocytopenia induced by heparin use, with platelet levels typically returning to normal gradually after discontinuation of heparin. A common complication is Heparin-Induced Thrombocytopenia and Thrombosis (HITT), which generally occurs 5 to 8 days after the initiation of heparin therapy.

Type 1 diabetes (T1D) is a form of diabetes caused by the destruction of pancreatic beta cells, leading to a significant reduction in insulin levels. Although it can occur at any age, it is most prevalent among adolescents and young adults. Patients typically present with the classic “three polys and one loss” symptoms: polyphagia, polydipsia, polyuria, and weight loss. Currently, T1D is incurable, and patients require lifelong insulin therapy.

Veralox, founded in 2017 and headquartered in Maryland, USA, is a clinical-stage biopharmaceutical company. The company primarily focuses on the development of small-molecule drugs for immune-mediated rare blood disorders to address patients’ medical needs. Veralox is committed to developing best-in-class therapies, with its lead candidate, VLX-1005, intended for the treatment of patients with HIT and HITT.

Currently, Veralox’s 12-LOX inhibitor is in the development stage and can help modulate platelet activation and cellular stress signaling. This drug prevents the progression of type 1 diabetes (T1D) by maintaining normal function of pancreatic beta cells in the human body. In addition, Veralox is also developing second-generation therapeutics for the treatment of immune-mediated and inflammatory diseases.

Jeffrey Strovel, CEO of Veralox Therapeutics, stated, “Veralox’s mission is to develop innovative therapeutics for immune-mediated diseases such as heparin-induced thrombocytopenia (HITT) and type 1 diabetes (T1D). With support from the JDRF T1D Fund, Sanofi Ventures, and other investors, Veralox will continue to advance its novel technologies, progress its drug candidates through clinical trials, and explore additional indications for its therapies.”

Katy, Managing Director of JDRF, stated: “Veralox has an experienced drug development team, and JDRF will continue to provide financial support to accelerate the development of therapies for HITT and T1D.”

JDRF is a venture philanthropy fund that primarily assists startup pharmaceutical companies in developing therapies for type 1 diabetes (T1D), providing patients with prevention, diagnosis, and treatment services. The organization’s mission is to drive the development of innovative drugs and therapeutic devices to improve clinical outcomes for patients with T1D.

Sanofi Ventures was established in 1994 and is headquartered in Massachusetts, USA. The firm primarily invests in the biotechnology and digital health sectors, providing financial support and strategic guidance to startups.

VTC Innovation Fund, established in 1996 and headquartered in Virginia, USA, is a venture capital firm.

VTC Seed Fund is a venture capital firm that primarily invests in early-stage companies.

Maryland Momentum Fund is a venture capital firm that primarily provides financial support to promising technology companies.

The University of Vermont Health Network, established in 2011 and headquartered in Vermont, USA, is a healthcare organization that primarily provides medical services to residents of Vermont and northern New York.

TEDCO, established in 1998 and headquartered in Maryland, USA, is a venture capital and financial services firm. The company primarily provides funding support to researchers, entrepreneurs, and startups.

(Compiled by Xu Xiaoxue)