Osteal Therapeutics, Inc., a privately held, clinical-stage pharmaceutical company based in Dallas, Texas, has completed an oversubscribed $50 million Series D preferred stock equity financing round.
Zimmer Biomet led the financing round. Concurrent with the financing, a Zimmer Biomet representative will join the Osteal Therapeutics Board of Directors. Zimmer Biomet was joined in the financing by the following returning investors: Johnson & Johnson Innovation – JJDC, Inc., the strategic venture capital arm of the Johnson & Johnson Family of Companies; Gideon Strategic Partners, a Santa Monica-based investment management firm; and HM Capital, a capital management firm.
The financing will be utilized for the advancement and development of the Osteal Therapeutics therapies portfolio. At present, priority will be given to advancing VT-X7. According to the company, VT-X7 is a “novel drug/device combination product designed to deliver therapeutic concentrations of vancomycin and tobramycin, well-established, broad-spectrum antibiotics, directly to the joint space and surrounding tissue to treat PJI [periprosthetic joint infection].”
Osteal Therapeutics Chairman and Chief Executive Officer David Thompson said, “This round of financing represents an inflection point in the company’s progress towards introducing VT-X7 to the market.”
Thompson continued, “From the beginning, Osteal has been extremely fortunate to have the support of a world-class group of financial and strategic partners who share our vision and recognize the tremendous impact our programs will have on patient care. I am delighted to welcome Zimmer Biomet as a partner and look forward to working closely with their exemplary team.”
The funds will be used to submit a New Drug Application for VT-X7. The funds will also be used for the accelerated commercial launch of VT-X7. Per the press release, the U.S. Food and Drug Administration (FDA) has “granted VT-X7 Breakthrough Therapy, Orphan Drug, Fast Track, and Qualified Infectious Disease Product designations.”
According to the press release, VT-X7 has already been “the subject of two multicenter, randomized, controlled trials, APEX and APEX-2.” APEX-2 is expected to be completed by the end of 2024.
