InCarda Therapeutics Secures $42 Million Series B Financing to Advance Inhaled Flecainide Therapy for Paroxysmal Atrial Fibrillation

Recently, VCBeat (WeChat official account: vcbeat) learned from foreign media reports that U.S. biopharmaceutical company InCarda Therapeutics announced the completion of a $42 million Series B financing round. The round was led by Sofinnova Ventures and HealthCap, with participation from Deerfield Management, while existing investors Morningside Venture Capital and Asset Management Ventures made additional investments.

As part of this round of financing, Alan Colowick, Partner at Sofinnova; Johan Christenson, Partner at HealthCap; and Andrew ElBardissi, Head of Private Transactions at Deerfield Management, will join the Board of Directors of InCarda.

InCarda, founded in 2009, is a privately held, clinical-stage biopharmaceutical company. The company is developing an inhalation therapy for the treatment of paroxysmal atrial fibrillation (PAF). This therapy is designed to rapidly deliver flecainide, a well-established antiarrhythmic agent, to the heart via the lungs, thereby restoring normal sinus rhythm (NSR) and alleviating symptoms following PAF episodes. The therapy is under further development with the goal of enabling patients to self-administer the medication wherever a PAF episode may occur, facilitating rapid conversion to NSR.

Image from the official website of InCarda Therapeutics

During episodes of paroxysmal atrial fibrillation (PAF), patients experience palpitations, chest pain, and a fluttering sensation in the chest, accompanied by symptoms such as weakness, fatigue, dizziness, and sweating. Data indicate that approximately 25% of PAF patients progress to permanent atrial fibrillation (AF) within five years. Traditional management of PAF relies on long-term oral antiarrhythmic medications or emergency hospital interventions, such as intravenous injection, electrical cardioversion, and catheter radiofrequency ablation.

InCarda recently launched the InRhythm Phase 2 clinical trial, a prospective, randomized, and multicenter in-hospital study designed to evaluate the feasibility, safety, efficacy, and tolerability of single and repeated inhalations of flecainide in patients following episodes of paroxysmal atrial fibrillation (PAF). Key endpoints of the trial include the percentage of patients who convert to normal sinus rhythm (NSR) within 45 minutes after PAF treatment, the time required for conversion to NSR, and the time needed for alleviation of atrial fibrillation (AF) symptoms. InCarda stated that the results of this trial are expected to be announced in the second half of 2019.

The current round of funding will be primarily used for the Phase 2 clinical study of InRhythm. Grace Colón, President and Chief Executive Officer of InCarda, stated, “There is currently no therapy available that can rapidly convert paroxysmal atrial fibrillation (PAF) to normal sinus rhythm (NSR), and the InCarda team believes that inhaled therapy represents a new direction in the treatment of cardiovascular diseases. We are pleased to partner with these experienced investors to continue advancing the development of InRhythm efficiently.”

Sofinnova Ventures, founded in 1974 and headquartered in California, USA, is a venture capital firm primarily investing in technology-driven startups in the life sciences sector. In addition to providing capital, the firm assists its portfolio companies in building management teams, establishing strategic alliances, and guiding them through mergers and acquisitions as well as initial public offerings. Its French parent company, Sofinnova SA, was established in Paris in 1972 and is one of Europe’s earliest venture capital firms, having been an early investor in renowned companies such as Tandem Computers and Genentech.

HealthCap, established in 1996 and headquartered in Stockholm, Sweden, is a venture capital firm specializing in investments within the life sciences sector. HealthCap operates as an investment group comprising multi-stage venture capital funds, with Odlander Fredrikson Group serving as its exclusive investment advisor. The firm’s primary investment stages include early-stage venture capital, late-stage venture capital, and private equity.

DCM, established in 1993, is a leading healthcare investment firm that primarily invests in early-stage pharmaceutical R&D companies, mature healthcare service providers, and medical device companies. DCM excels at tailoring financing solutions for its portfolio companies, exploring various avenues to enable them to fully execute their business strategies. Currently, the firm manages over $8 billion in assets.

Morningside Venture is a diversified investment group established in 1986, primarily engaged in private equity and venture capital. The group is an active investor in emerging life sciences and medical technology startups, with investments across North America, Europe, and Asia.

AMV, founded in 1965 and headquartered in California, USA, primarily invests in digital health, technology, and life sciences companies. It actively assists its portfolio companies in addressing typical early-stage challenges, such as talent acquisition, technology development, and sales channel expansion. The firm was also an early investor in well-known companies including Amgen, Tandem Computers, and Applied Biosystems.