Priothera raises €30 million to develop onetime Novartis candidate in AML transplantation setting

The group believes mocravimod, which Priothera Ltd. has acquired from Kyorin Pharmaceutical Co. Ltd. (Tokyo:4569), can be a best-in-class therapy for AML.

Under a partnership with Kyorin, Novartis AG (NYSE:NVS; SIX:NOVN) had previously developed mocravimod in immunological indications. After the Swiss pharma deprioritized mocravimod for strategic reasons, the syndicate set up Priothera as a single-asset company with staff from Novartis who had already worked on the program, Fountain Healthcare Partners’ Manus Rogan told BioCentury.

Priothera’s founding CEO is Florent Gros, a former managing director at Novartis Venture Fund. The start-up’s board includes Dhaval Patel, a longtime Novartis executive whose team developed S1PR1 modulators Gilenya fingolimod and Mayzent siponimod for multiple sclerosis. Patel, who was head of research at the Novartis Institutes for BioMedical Research, is now EVP and CSO of UCB S.A. (Euronext:UCB).

S1PR modulation can slow the migration of T cells from lymphatic tissues to the periphery, the company said. A therapeutic that affects the target’s signaling could reduce tissue damage, mortality and morbidity from HSCT transplantation in AML patients.

“Data generated in a Phase IIa study of mocravimod had shown reduced mortality and reduced relapse alongside allogeneic HSCT, not just in AML but also other hematological malignancies,” Rogan said.

Fountain led the round alongside co-leader HealthCap. Also participating were Tekla Capital Management and EarlyBird Capital. Kyorin is a shareholder, and retains mocravimod’s rights in Japan and Korea, according to Rogan.

Priothera expects to conduct a randomized, pivotal trial of mocravimod that will read out in 2023. Conditional approval could follow the next year, Rogan said.