Following a cancelled deal with pharmaceutical company Roche, the Ofer-backed pharmaceutical company has raised the first tranche of a planned $56.3m series E round.

Chiasma, an Israel-based biotechnology company backed by conglomerate Ofer Holdings, has secured the $33.8m first tranche of a planned $56.3m series E round from undisclosed investors, according to MedCity News.

Chiasma had previously entered a $595m commercialisation deal with pharmaceutical company Roche, until Roche decided to cancel the agreement in July 2014 following the results of a Phase 3 clinical trial for Chiasma’s oral treatment for hormonal disorder acromegaly.

Ofer Hi-Tech, a subsidiary of Ofer Holdings, participated in a $44m series C round for Chiasma in 2006 that also included Arch Venture Partners, MPM Capital and F2 Venture.

Chiasma has raised about $155m in total funding from investors also including F3 Ventures, Abingworth, 7 Med Health Ventures, Jerusalem Global Ventures and Yissum Research Development, the technology transfer office of Hebrew University of Jerusalem.

Chiasma’s technology is based on research conducted by Muli Ben Sasson, a cell biologist at the university’s Hadassah Medical School. Acromegaly is a disorder caused by an excess of growth hormones which is fatal if left untreated. It affects about 5,000 people per million.

 

Aritcle originally published on our sister site, Global Corporate Venturing.