Funds to Advance Clinical Development of Renal Bio-Replacement Therapy for the Treatment of Acute Renal Failure

RenaMed Biologics, Inc. announced recently that it has successfully completed a $40 million mezzanine financing. The funds will be used to continue the clinical development of the company’s Renal Bio-Replacement Therapy for Acute Renal Failure, as well as support its move to a new headquarters and manufacturing facility in Westborough, MA.

TVM Capital and Lurie Investments co-led the financing and were joined by several new investors, including MDS Capital, Merlin BioMed Group, and TSC BioVenture Capital Corporation. Existing investors who also participated in this round include: Apjohn Ventures Fund, BD Ventures (Becton Dickinson), Bio*One Capital (Singapore), and NorthCoast Technology Investors. As part of this financing, RenaMed expanded its Board of Directors to include Dr. Gert Caspritz, general partner of TVM Capital, and Gerry Brunk, venture partner of MDS Capital.

"This was a very successful financing round which exceeded our objectives and brought several new strong life science investors into RenaMed,” said Greg Phelps, Chairman and CEO of RenaMed. “I am encouraged by the positive financial market response to our lead product and progress. The funds raised enable us to drive the clinical development of our Acute Renal Failure program through Phase 2 this year and into Phase 3 next year, complete the build-out and commissioning of manufacturing in our Westborough, MA facility, and expand investment in other programs.”

RenaMed is developing Renal Bio-Replacement Therapy (RBT) to temporarily replace lost kidney functions in ICU patients with Acute Renal Failure (ARF), as a bridge to survival and full recovery. RBT is administered ex vivo using physiologically active human renal epithelial cells incorporated in a hollow-fiber dialysis cartridge. RBT works in conjunction with current filtration therapies and fits into standard hospital ICU procedures. In 2005 RenaMed entered into a strategic collaboration with Genzyme Corporation to jointly develop RBT for ARF, and the product is currently in a second Phase 2 trial.