Dance Biopharm Secures $20.5M Private Equity Financing to Advance Inhaled Insulin Therapy

Recently, VCBeat (WeChat Official Account: vcbeat) learned from foreign media reports that Dance Biopharm announced the completion of a new $20.5 million private equity financing round.

In this round of financing, which was open exclusively to insiders, a consortium of institutional investors and accredited individual investors participated. SternAegis Ventures, in partnership with Aegis Capital, served as the exclusive financial advisor for this round, while Molex Ventures was the sole investor.

It is reported that Dance Biopharm has completed five rounds of financing since its inception. Specifically, the company secured three rounds of venture capital financing in February 2015, October 2015, and November 2017, raising $9.5 million, $20 million, and $13.9 million, respectively. Subsequently, Dance Biopharm closed a $24.5 million private equity financing round in September 2018. The total amount raised reached $93.5 million.

Dance Biopharm, fully named Dance Biopharm Holdings Inc., is a private biopharmaceutical company headquartered in the San Francisco Bay Area. Founded by Dr. John Patton in 2010, the company focuses on developing novel inhalable soft-mist biologics for patients with chronic diseases. Its products are currently in clinical trials.

The proceeds from this private equity financing will be primarily used for the development of insulin delivery devices, including Phase III clinical trials of Dance 501, regulatory approval studies for the investigational new drug GLP-1 analog Dance 601, organizational preparations to support these studies, and general corporate purposes.

Anne Whitaker, CEO of Dance Biopharm, stated, “This round of financing represents a turning point for Dance. We are preparing for the pivotal trial of Dance 501. As our flagship product, Dance 501 will propel the company into the clinical trial phase.”

Dance 501 is a novel inhaled soft-mist insulin delivery device that offers a non-invasive approach to diabetes treatment. It enables patients to conveniently and safely deliver insulin to the lungs within a few breaths, achieving high-efficiency dosing. With the potential for synergistic use alongside other biologic therapies, it holds broad prospects.

As part of the company’s revolutionary portfolio of drug-device combination products and health platform, Dance 501 delivers a novel, preservative-free inhaled recombinant insulin into the body via a proprietary handheld intelligent soft-mist device, and has currently entered late-stage clinical research. Dance plans to initiate global Phase III clinical trials in mid-2020, enabling patients with type 1 and type 2 diabetes to use Dance 501.

Lily Yeung, Vice President of Molex Ventures, stated, “We are delighted to invest in Dance Biopharm, a company that advances the development and use of inhaled biologics for the treatment of chronic diseases via smart, non-invasive medical devices. We believe Dance Biopharm will make significant strides in developing innovative, convenient, and cost-effective biologic delivery devices.”

Molex Ventures, a subsidiary of Molex Electronic Technologies, LLC, actively seeks out promising startups and established companies in emerging fields for Molex products. As a global leader in electronics technology, Molex participated in the development of Dance 501, an intelligent, connected inhaled insulin delivery device.

Molex Ventures oversees the venture capital and early-stage investment processes for Molex Electronics Ltd. Leveraging industry and compliance expertise, robust design and manufacturing capabilities, as well as equity investments, venture capital services, and related licensing, Molex Ventures helps Molex Electronics Ltd. transform early-stage technologies from concepts into commercial products and expand their market presence.

SternAegis Ventures is the management team under Aegis Capital, primarily engaged in venture capital and private equity financing. SternAegis is committed to identifying and investing in high-growth potential companies for investors willing to assume higher risks. SternAegis provides funding throughout the journey from initial concept to market entry, leveraging professional financing and strategic partnerships to monetize innovative ideas.

Aegis Capital is a full-service investment firm headquartered in New York, with operations spanning across the United States. In partnership with RBC Capital Markets (RBC CM), Aegis offers premium services in wealth management, retirement planning, insurance, investment banking, and private banking. The parent company of RBC Capital Markets, Royal Bank of Canada, is a global leader in diversified financial services.

(Compiled by Tang Lulu)