The spinout has bagged support from Inserm Transfert Initiative and two Bpifrance-managed funds for its clinical-stage therapy for hepatitis B.

Enyo Pharma, a France-based viral infection therapy developer spun out from Claude Bernard Lyon 1 University, closed a €40m ($46.8m) series B round yesterday featuring Inserm Transfert Initiative, the early-stage investment fund of research institute Inserm.

The round was led by healthcare-focused investment firm Orbimed Advisors and also featured Innobio and Bpifrance Large Venture, two funds managed by French government-owned investment bank Bpifrance.

Sofinnova Private Capital VII, Andera Partners and Morningside Venture Investments also provided funding.

Founded in 2014, Enyo Pharma is currently performing phase 1b clinical trials on an orally-administered small molecule drug called EYP001 that fights the chronic virus hepatitis B, which manifests as an infection of the liver.

EYP001 is not a steroid and thus does not present immunosuppressant qualities that risk aggravating the hepatitis B sufferer’s condition.

Anti-viral medications for hepatitis B today tend to focus on preventing viral replication, however EYP001 will attempt to confront DNA structures at the virus’s core.

The spinout’s second asset, EYP002, is scheduled to begin supporting studies for securing investigational new drug status during the second half of 2018.

EYP002 targets a small group of proteins linked to controlling the body’s stress responses and mitochondrial metabolism.

The asset could help treat infectious diseases but has also shown promise during animal pharmacological studies on metabolic, oncological and rare genetic diseases.

Enyo will use the series B cash to push EYP001 through phase 2 clinical trials targeting hepatitis B as well as non-alcoholic steatohepatitis, often known as fatty liver disease.

Iain Dukes, a venture partner with OrbiMed, will join the board of directors. Raphaël Wisniewski, partner at Andera, will become an observer together with Carl Gordon, general partner at OrbiMed, and Laurent Higueret, healthcare investment director for Bpifrance Large Venture.

Sofinnova Partners previously led Enyo’s $24.5m series A round in 2016, with participation from both Morningside and Innobio.

Enyo Pharma’s co-founders include Patrice André, professor of virology at the Charles Mérieux Lyon Sud Medical School and team leader at the International Centre for Infectiology Research.