Ligand Pharmaceuticals administers $3m to Dianomi

Dianomi Therapeutics, a US-based osteoarthritis treatment technology developer based on University of Wisconsin-Madison (UW-Madison) research, obtained $3m in funding on Tuesday under a partnership deal with biotech developer Ligand Pharmaceuticals.
Founded in 2017, Dianomi Therapeutics has licensed a therapeutics delivery technology called Mineral Coated Microparticle (MCM) that sustains biologics and small molecules in the body for longer to help treat pain disorders and osteoarthritis, the latter of which is often treated with surgery at present.
MCM works by exploiting a coating containing human mineralised ingredients such as calcium salts which allow molecules to be released without disruption to their structure, a potential risk prevalent with conventional polymer drug casings.
The hope is that MCM’s durability will facilitate lower dosages for patients, improving safety and treatment outcomes as a result. In addition to treating pain and osteoarthritis, Dianomi believes MCM could be adapted to administer both medications on sale currently and those under development.
Under the partnership, Ligand will receive 2% to 3% tiered royalties based on the level of net sales for the first five MCM-based products to receive regulatory approval.
Ligand will supply Dianomi with a $1m convertible loan that must be switched for equity at the next qualified financing round, and will also provide technical and scientific guidance to the business for one year.
The spinout commercialises work by researchers including co-founder William Murphy, professor of biomedical engineering and of orthopaedics and rehabilitation.
John Higgins, CEO of Ligand Pharmaceuticals, said: “MCM has a broad range of applicability as well as the potential to improve and extend many of the therapeutic benefits of both novel and existing drugs, similar to Ligand’s Captisol [drug delivery] technology.
“This investment helps fund a promising company and will provide potential royalties to Ligand on products that could complete development in the next several years and generate revenue into the late 2030s.”