MGB Biopharma imbibes new funding

MGB Biopharma, a UK-based antibiotics developer based on University of Strathclyde’s research, raised an undisclosed amount on Friday in a round led by syndicate Archangel Investors.
The oversubscribed round also featured Scottish Investment Bank (SIB), part of state economic development agency Scottish Enterprise, as well as venture capital firm Barwell and angel group TRI Capital.
Founded in 2010, MGB is working on an oral antibiotic called MGB-BP-3 as a treatment for clostridium difficile bacteria, including a particularly virulent strain called BI/NAP1/027 that is largely resistant to existing medications.
BI/NAP1/027 is responsible for a life-threatening large intestine infection called clostridium difficile-associated disease, which kills an estimated 30,000 people in the US each year.
The cash injection will be used to advance the antibiotic through phase 2a clinical testing while also funding work on other drug development initiatives through the end of 2020.
The phase 2a study will evaluate an incremental dosage of MGB-BP-3 for safety and effectiveness in CDAD and will read out in the fourth quarter of 2019.
Miroslav Ravic, MGB’s chief executive, said: “We are delighted to have secured additional financing from both new and existing investors, who have demonstrated their confidence in the progress of our phase 2a study.
“Given its unique properties, we remain confident that MGB-BP-3 could become a new paradigm for the treatment of CDAD, a potentially life-threatening infection.”
SIB had previously contributed to a $1.7m round for MGB in March 2018 that was led by Archangels and backed by Barwell, TRI Capital and Syndicate Room.
The company also closed a $1.2m round in 2017 that Archangels led, participating together with SIB, TRI Capital and Barwell. The same four investors had already provided $6.4m in funding for MGB in 2014.