Oyster Point Pharma Secures $93 Million Series B Financing to Advance OC-01 and OC-02 Nasal Sprays for Dry Eye Disease

VCBeat (WeChat ID: vcbeat) has learned that on February 26, 2019, pharmaceutical company Oyster Point completed a $93 million Series B financing round. The round was co-led by Invus Opportunities, Flying L Partners, and Falcon Vision, with participation from existing investors New Enterprise Associates (NEA) and Versant Ventures, as well as new investor Vida Ventures.

To date, Oyster Point has secured two rounds of financing. In 2017, the company raised $22 million in its Series A round. Reportedly, the funds from the Series B round will be used to advance the Phase III clinical trials of OC-01 and OC-02 nasal sprays for the treatment of dry eye disease.

Dry eye disease is a multifactorial ocular surface disorder that causes symptoms such as dryness, stinging, burning, blurred vision, and eye fatigue. Severe dry eye disease can lead to keratoconjunctival lesions and impair vision. In the United States, 16 million people are diagnosed with dry eye disease annually. Although the prevalence of dry eye disease is high, treatment options are limited, underscoring an urgent need for new therapeutic approaches.

Oyster Point, founded in 2015, is a pharmaceutical company based in New Jersey, USA, dedicated to developing novel therapies for patients with ocular surface diseases. The company is developing nasal sprays with OC-01 and OC-02 as the primary active ingredients. OC-01 and OC-02 are nicotinic acetylcholine receptor (nAChR) agonists. Administered intranasally, the product stimulates nAChRs located on the trigeminal nerve, activating glands that comprise the lacrimal functional unit and promoting tear film production.

In Phase II clinical trials, Oyster Point found that OC-01 and OC-02 could rapidly and significantly improve symptoms in patients with dry eye disease. Furthermore, both OC-01 and OC-02 demonstrated favorable tolerability, with no significant ocular adverse events or drug-related serious adverse events reported.

Benjamin Tsai, head of Invus Opportunities, stated, “The results achieved by the OC-01 and OC-02 nasal sprays in Phase II clinical trials are sufficient to demonstrate the product’s significant market potential. We believe that Oyster Point will redefine the standard of care for dry eye disease.”

Invus Opportunities is the sister fund of Invus Group. The fund focuses on partnering with leading global private transaction management teams and investors, managing approximately $1.5 billion in assets.

Flying L Partners, based in Colorado, USA, is an investment firm focused on the healthcare sector. The firm has over three decades of experience investing in ophthalmology companies.

Falcon Vision is a KKR-backed platform with a focus on ophthalmology investments.

New Enterprise Associates, founded in 1977 and headquartered in California, USA, is a venture capital firm with a long-standing history. Since its inception, the firm has invested over $19 billion. Its investment focus centers on the technology and healthcare sectors.

Versant Ventures, established in 1999, is an investment firm focused on the healthcare sector. The firm manages approximately $5 billion in assets and maintains offices in the United States, Canada, and Europe.

Vida Ventures, established in 2017, is an investment firm headquartered in Massachusetts, USA. The firm comprises a team of scientists, physicians, entrepreneurs, and investors passionate about the life sciences industry, with a focus on investing in early-stage companies within the life sciences sector.

(Compiled by Jiao Yanli)