Viracta Therapeutics Secures $18.4M Series B+ Financing to Advance VRx-3996 into Phase 2 Clinical Trials for EBV-Associated Cancers
VCBeat (WeChat Official Account: vcbeat) has learned that Viracta Therapeutics, a clinical-stage drug development company based in California, USA, recently completed a $18.4 million Series B+ financing round. The round was led by existing investor NantKwest, with participation from new investor Wicklow Capital and founding investors Latterell Venture Partners and Forward Ventures.
Meanwhile, NantKwest Chairman and CEO Patrick Soon-Shiong announced that he will join the Viracta Board of Directors as Vice Chairman.
Upon completion of the financing, Viracta will advance VRx-3996 into Phase 2 clinical studies for the treatment of Epstein-Barr virus (EBV)-associated malignancies through its viral gene activation therapy.
Viracta is a clinical-stage drug development company dedicated to developing new therapies based on its patented viral gene activation therapy, aiming to benefit patients with virus-associated malignancies and other serious diseases.
Viracta’s viral gene activation therapy is a highly targeted combination treatment for virus-associated malignancies. Initially, this therapy primarily focused on virus-associated malignancies; however, as research advances, viral gene activation therapy will be applied to broader fields, treating a range of cancers and virus-related diseases.
Following this financing round, the lead investor NantKwest will obtain the licensing rights to Viracta’s Phase II candidate drug VRx-3996, which will be used in combination with NantKwest’s natural killer (NK) cell therapy.
VRx-3996 is a Phase 2 candidate drug, a Class I potent histone deacetylase inhibitor (HDACi), and an oral targeted therapy primarily aimed at virus-associated malignancies. In addition to its use in Viracta’s viral gene activation therapy, VRx-3996 has the potential to enhance the activity and potential efficacy of immunotherapeutic agents, such as NantKwest’s NK cell therapy.
According to the plan, Viracta will combine NantKwest’s aNK, haNK, and taNK NK cell therapies next year to advance VRx-3996 into clinical trials for solid tumors.
Image source: Viracta official website
Last month (November), Viracta entered into a collaboration with Shenzhen Salubris Pharmaceuticals, granting Salubris an exclusive license in mainland China for the intellectual property and technical information related to VRx-3996. Under the agreement, Salubris will pay Viracta milestone payments totaling up to $58 million, contingent upon the progress of clinical development, R&D, and regulatory registration of the product in China, as well as sales royalties at an agreed-upon percentage.
In addition, Salubris will subscribe to Viracta’s upcoming Series C preferred shares in tranches for a total of $10 million. Upon completion of the subscription, Salubris will hold an aggregate of 11,936,023 shares in Viracta, representing a 15.25% equity stake, thereby becoming a shareholder of Viracta with the rights and obligations associated with Series C preferred shareholders. The proceeds from this financing round are primarily intended to support Viracta’s core business activities, including research and development expenditures and daily operations.
On April 4, 2017, Viracta secured $18.4 million in Series B financing, led by NantKwest, with participation from existing investors Latterell Venture Partners and Forward Ventures, as well as new investor Wicklow Capital. The proceeds from this round were also allocated to advancing VRx-3996 into Phase II clinical trials for the treatment of virus-associated malignancies.
NantKwest, founded in 2002 and headquartered in San Diego, USA, is an innovative clinical-stage immunotherapy company dedicated to leveraging natural killer cells for the treatment of cancer, infectious diseases, and inflammatory disorders.
NantKwest holds a unique advantage in the implementation of precision oncology. Natural killer (NK) cell therapy demonstrates a favorable safety profile and has undergone multiple Phase I clinical trials in the United States, Canada, and Europe.
Wicklow Capital is a venture capital firm specializing in late-stage venture investments. Founded in 2004 and headquartered in Chicago, United States, the firm is affiliated with Dan Tierney, co-founder and board member of GETCO.
Latterell Venture Partners, founded in 2001 and headquartered in San Francisco, USA, is a venture capital firm focused on startups and early-stage healthcare companies, including those in biotechnology, pharmaceuticals, research instruments, biomaterials, medical devices, healthcare IT, and diagnostics.
Forward Ventures was established in 1993 and is headquartered in San Diego, United States.
Forward Ventures focuses on venture capital in the biosciences sector, with a professional investment team boasting extensive experience in entrepreneurship, venture capital, and operations. Since its establishment in 1993, the firm has invested in more than 50 companies and currently manages over $500 million in capital.
Shenzhen Salubris Pharmaceuticals Co., Ltd. (hereinafter referred to as “Salubris”), established in 1998 and headquartered in Shenzhen, is a comprehensive pharmaceutical group integrating the research and development, manufacturing, and sales of pharmaceutical products. The company was listed on the Shenzhen Stock Exchange in 2009, with stock code: 002294.
Salubris has established its core competitiveness through innovative products and evidence-based medical promotion, holding a leading position in the high-end specialty pharmaceutical sector for cardiovascular and cerebrovascular diseases. Currently, its business operations span 38 countries and regions worldwide, including China, the United States, Germany, France, and Japan.