Chiasma raising $56M to develop acromegaly drug—without Roche
- In August 2014, Roche backed out of a $595 million co-development deal with Chiasma, but Chiasma pledged to move forward with the development of its oral version of acromegaly drug octreotide.
- The deal fell apart despite the fact that the phase III trials were positive.
- In order to complete development of its drug, Chiasma is in the process of raising $56 million. So far, the company has raised $33.8 million.
In August, BiopPharma Dive reported on Chiasma's plight when Roche backed out of the two companies' co-development deal. However, Chiasma, based in Israel, has produced positive results for its phase III acromegaly drug. Therefore, the company—which was able to keep the $65 million up-front fee from Roche, as well as a percentage of the milestone payments—is raising money to take the drug all the way.
Why it matters so much: There is only one approved drug for the treatment of acromegaly, a disease that causes excess bone growth (Novartis pretty much owns this field). But the existing therapy is an injectable that patients find painful.
The global market for acromegaly is estimated to be $1.8 billion.