Arvelle Therapeutics Secures $180M Series A Financing to Advance Antiepileptic Drug Cenobamate in Europe

VCBeat (WeChat Official Account: vcbeat) has learned that the team under Axovant Gene Therapies (NASDAQ: AXON), a global leader in neurology, has recently spun off to become Arvelle Therapeutics, a new company headquartered in Basel, Switzerland, as it continues its transition into a biotechnology firm focused on gene therapy.

Arvelle Therapeutics, a new company, secured $180 million in Series A financing on February 18, 2019, to advance the launch of its novel drug cenobamate—an antiepileptic medication for the treatment of partial-onset seizures—into the European market. The round was led by Life Sciences Partners, with participation from NovaQuest, BRV Capital Management, Andera Partners, and HIG BioHealth Partners. This financing round ranks among the largest Series A investments ever raised by a European biotechnology company.

Following the spin-off of Arvelle Therapeutics, approximately 25% of Axovant’s employees will transition to the new company, including Mark Altmeyer, its President and Chief Business Officer, who will serve as President and Chief Executive Officer of Arvelle Therapeutics. Additionally, Greg Weinhoff, Axovant’s Chief Financial Officer, will depart the company in the second half of this year to become Chief Financial Officer and Chief Business Officer of Arvelle Therapeutics.

“Arvelle Therapeutics’ spin-off from Axovant signifies the completion of our transformation into a company focused on the development of innovative gene therapies, while also reducing financial burdens,” said Pavan Cheruvu, current CEO of Axovant. Cenobamate has currently received an investigational license from South Korea’s SK Biopharmaceuticals, which successfully submitted a marketing approval application for the drug to the FDA this month, with a decision expected by late November. Arvelle Therapeutics plans to submit its own marketing authorization application to the European Union based on data provided under SK’s clinical trial program.

“We conducted an in-depth review of cenobamate last year as we were rolling out the company’s new strategic direction. Through this process, we established a unique relationship with SK Biopharmaceuticals,” said Cheruvu. Under the agreement, SK Biopharmaceuticals will receive a $100 million upfront payment and is eligible for up to $430 million in regulatory and commercial milestones, plus royalties on sales in Europe. SK Biopharmaceuticals is also expected to acquire equity stakes in Arvelle Therapeutics in the future.

“Arvelle Therapeutics was founded to deliver truly innovative central nervous system (CNS) therapies to patients with serious neurological disorders, with cenobamate as its inaugural product,” said Altmeyer, former President and CEO of Otsuka America Pharmaceutical and former head of Bristol-Myers Squibb’s neuroscience business unit. He further stated that Arvelle Therapeutics would pursue additional financing opportunities in the future, enabling the company to leverage its European presence to expand into broader markets.

Furthermore, according to the report on the global burden of epilepsy from 1990 to 2016 published by The Lancet, although the incidence of epilepsy worldwide has improved over the 26-year period, it remains a significant cause of death. In light of this, Arvelle Therapeutics still has substantial room for growth.

Axovant Gene Therapies (Axovant Sciences) is a globally leading, clinical-stage neurology company headquartered in Basel, Switzerland. Axovant is currently focused on the treatment of dementia and related neurological disorders, and is developing a portfolio of candidate products to comprehensively address the cognitive, functional, and behavioral aspects of dementia.

(Compiled by Ning Chen)