Delian Capital Leads RMB 100 Million Financing in MicuRx Pharmaceuticals to Advance NDA Filing in China

On December 7, 2017, MicuRx Pharmaceuticals announced the completion of a new round of financing amounting to RMB 100 million. This round was led by Delian Capital, an existing investor in MicuRx, and followed by BVCF (BioVeda Capital Fund).

According to VCBeat, the funds raised will be used to support and complete the Phase III clinical trials of the oral antibiotic Contezolid (MRX-I), file for new drug approval in China, and carry out other business operations in China.

MicuRx Pharmaceuticals was founded in 2007 and is dedicated to the discovery and development of antibiotics with improved safety profiles to enhance the treatment of infections caused by drug-resistant bacteria.

Methicillin-resistant Staphylococcus aureus (MRSA) is the most common human bacterial pathogen worldwide, with millions of people infected annually. Infections caused by this pathogen can lead to various conditions affecting the skin, bones, lungs, and bloodstream, resulting in tens of thousands of deaths each year.

Although there are some antimicrobial agents available on the market for treating MRSA infections, oral medications for severe infections are rare. For severe infections, clinical practice typically involves intravenous administration of linezolid. However, this antibiotic is associated with significant adverse effects, including myelosuppressive toxicity, necessitating cumbersome daily white blood cell count monitoring after 14 days of treatment.

Switching from intravenous to oral therapy is undoubtedly more convenient. However, this transition requires the development of safer new oral medications, with the aim of shortening hospital stays and reducing healthcare expenditures as much as possible.

Contezolid (MRX-1) and Contezolid Acefosamil (MRX-4), novel antibiotics under development by MicuRx Pharmaceuticals, are next-generation oxazolidinone antibiotics for the treatment of methicillin-resistant Staphylococcus aureus (MRSA) infections. Compared with linezolid, a blockbuster antibacterial agent in the same class, these drugs demonstrate comparable clinical efficacy, while their specially designed structures help reduce hematological adverse effects associated with existing marketed agents in this class.

MicuRx Pharmaceuticals has established R&D laboratories in both San Francisco, California, USA, and Shanghai, China. In 2015, MicuRx successfully completed two independent Phase II clinical studies of oral contezolid (MRX-1) in the United States and China, respectively. The Company is currently nearing completion of its Phase III clinical trial in China for the treatment of complicated skin and skin structure infections (cSSSI).

The Phase I clinical trials of the oral and intravenous formulations of Contezolid Acefosamil (MRX-4) have recently been completed, and the Phase II clinical trial of Contezolid Acefosamil (MRX-4) in the United States is expected to commence in 2018.

In 2016, MicuRx Pharmaceuticals completed a $55 million Series C financing round. It is reported that the company has secured a total of $107 million in investment, with investors including Morningside Ventures, BVCF, Delian Capital, GP Healthcare Capital, GP TMT Capital, and 3E Bioventures Capital.

Yuan Zhengyu, President and Chief Executive Officer of MicuRx Pharmaceuticals, stated, “Despite the recent launch of several new antibiotics, there remains an unmet clinical need for safe oral anti-MRSA agents like Contezolid, particularly for outpatients and those requiring longer treatment courses.”

Furthermore, he considers the flexibility of administration via both intravenous injection and oral routes to be critically important. This allows clinicians to effectively treat hospitalized critically ill patients with MRSA or VRE infections using the same drug during their inpatient stay, followed by a transition to outpatient oral therapy.

“We believe Contezolid Acefosamil has the potential to meet such clinical needs,” he added.

Yuan Zhengyu revealed that the Phase I clinical results of Contezolid Acefosamil met the company’s expectations for this drug. The funding from this financing round will support the company in advancing the clinical development of this project in both the United States and China.

Zhao Guobao, Investment Director at Delian Capital, stated, “Drug-resistant bacterial infections are a major threat to global public health. MicuRx Pharmaceuticals has a comprehensive portfolio of antibiotics targeting drug-resistant bacteria, among which Contezolid is one of the new antibiotic drugs closest to commercialization in China.”

According to statistics, over 5 million people worldwide are infected with drug-resistant bacteria each year, and more than 100,000 deaths are attributed to such infections, creating an urgent market demand for next-generation antibiotics.

“Yuan Zhengyu, the founder of MicuRx Pharmaceuticals, has decades of experience in antibiotic development and a proven track record as a successful entrepreneur,” added Zhao Guobao. “We believe that MicuRx possesses robust R&D capabilities, and its team combines global perspective with forward-thinking vision, holding strong potential to become a world-class leader in the global antibiotic sector.”