Modus stays the course for $15.8m series A

Modus Therapeutics, a Sweden-based sickle cell disease therapy developer spun out from Karolinska Institute and Uppsala University, has secured SEK140m ($15.8m) in series A funding from investors including VC firm HealthCap.

The $15.8m includes HealthCap’s $6.8m investment and an additional $9m from conversion of existing notes from prior rounds.

Founded in 2011, Modus Therapeutics is developing a drug called sevuparin to help assuage sickle cell disease, a group of genetic abnormalities affecting the shape of red blood cells, consequently hindering circulation to the organs.

Patients face a lower life expectancy and chronic health concerns including anaemia, severe pain, swellings, bacterial infections and strokes. Treatment options are currently limited to analgesic painkillers.

Sevuparin is currently undergoing a phase 2 clinical trial. The drug already has orphan drug designation from US regulator Food and Drug Administration and its EU counterpart European Medicines Agency.

Modus previously closed a $3.5m round in February 2017 backed by KDev Investments, the investment arm of commercialisation firm Karolinska Development, which expects to earn an additional $4m from the enhanced book value of its stake following the series A round.

Other backers in the 2017 round included Östersjöstiftelsen, the Swedish-state owned Foundation for Baltic and East European Studies, as well as healthcare company Praktikertjänst’s corporate venturing unit, Praktikerinvest.

Viktor Drvota, chief executive of Karolinska Development, said: “HealthCap is one of Europe’s leading and most reputable investors within life science.

“We view their investment in Modus Therapeutics as a clear acknowledgment of the quality and innovative depth of our portfolio company’s pipeline project.”