Mirum Pharmaceuticals Secures $120 Million Series A Financing to Advance Development of Maralixibat for Cholestatic Liver Diseases

Recently, VCBeat (WeChat Official Account: vcbeat) learned from foreign media reports that Mirum Pharmaceuticals, a clinical-stage drug development company headquartered in San Diego, California, has recently completed its Series A financing round, raising $120 million. The round was led by New Enterprise Associates (NEA), with participation from Deerfield Management (DCM), Frazier Healthcare Partners, Novo Holdings A/S, Pappas Capital, RiverVest Venture Partners, and Rock Springs Capital.

As part of the financing plan, Patrick Heron, Managing Partner at Frazier Healthcare Partners; Jonathan Leff, Partner at Deerfield; Tibo Aynechi, Partner at Novo; and Niall O’Donnell, Managing Director at RiverVest, will join the Board of Directors of Mirum.

Mirum has developed a new drug for the treatment of cholestatic liver diseases. The drug, named Maralixibat, is a Phase III, ready-to-use investigational oral inhibitor of the apical sodium-dependent bile acid transporter (ASBT), indicated for conditions including Alagille syndrome (ALGS) and progressive familial intrahepatic cholestasis (PFIC).

Image from the official Unsplash website

Mirum is currently awaiting regulatory approval. Once its efficacy is evaluated, maralixibat is likely to become the preferred oral medication for treating these conditions. Although Mirum initially focused on pediatric indications for maralixibat, the drug holds potential for further development to serve a larger and broader patient population. To date, maralixibat has been administered to more than 230 patients with cholestasis, establishing a database of safety and efficacy data.

Mirum Chairman and Chief Executive Officer Mike Grey stated, “The interim data from the landmark Phase 2b study conducted by the ALGS consortium, released recently, underscore my confidence in maralixibat and its potential to help patients suffering from severe liver disease.”

Mirum has entered into an agreement with the biotechnology company Shire, securing exclusive global rights to develop and commercialize maralixibat. Shire will receive an upfront payment, equity in the company, and potential future royalties. Additionally, as part of the strategic transaction with Shire, Mirum has also obtained exclusive global rights to develop volixibat, an ASBT inhibitor.

Regarding this investment, Ed Mathers, Investment Partner at NEA, stated: “The substantial investment made by NEA and the distinguished consortium of biotechnology investors in Mirum underscores our recognition of the value of maralixibat, as well as our confidence in Mirum’s management team to execute its aggressive development plan.”

Following the completion of the financing round, Mirum intends to leverage the proceeds to further develop its lead drug candidate, maralixibat, with the aim of enhancing therapeutic outcomes for rare cholestatic liver diseases.

NEA, founded in 1978, is one of the leading firms in the global venture capital industry. The company’s investments are concentrated in the fields of information technology and biomedical technology. In the biomedical technology sector, specific investment areas include medical devices, healthcare services, medical information systems, and biopharmaceuticals. NEA has invested in more than 500 companies, of which 145 have gone public and 185 have been merged or acquired. Currently, the firm manages over $6 billion in capital.

DCM, established in 1993, is a leading healthcare investment firm that primarily invests in early-stage pharmaceutical research 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. The firm currently manages over $8 billion in assets.

Frazier Healthcare Partners, established in 1991, is a venture capital firm primarily focused on investments in pharmaceuticals, healthcare services, and medical products. Since its inception, the firm has invested in more than 170 healthcare companies and manages over $2 billion in capital.

Novo Holdings A/S was established in 1999 as the holding company of the Novo Group, wholly owned by the Novo Nordisk Foundation. In addition to serving as the primary shareholder of Novo Group companies, Novo Holdings is responsible for managing the Foundation’s investment assets. The fund primarily invests in life sciences companies at various stages of development, as well as in securities portfolios.

RiverVest, established in 2000, is a U.S.-based venture capital firm primarily investing in early-stage life sciences companies. It excels at identifying, discovering, and actively nurturing promising life sciences companies in the medical device and biopharmaceutical sectors, while helping entrepreneurs drive the early development of their startups.

Pappas Capital specializes in investing in life sciences companies across the United States and Canada, with a focus on biotechnology, biopharmaceuticals, drug delivery, and medical device enterprises. The firm is committed to helping its portfolio companies recruit talent and formulate regulatory strategies, thereby jointly fostering their growth.

Rock Springs Capital is a venture capital firm with a broad business scope. In addition to investing in both early- and late-stage biotechnology companies, it provides portfolio management and financial services to corporate and institutional clients.