Nexvet secures $7m in capital raising

Veterinary drug developer Nexvet Biopharma will receive a $7 million funding injection courtesy of an oversubscribed capital raising.

The Melbourne-based company secured the investment from an international syndicate of investors. Australian life sciences investment firm BioScience Managers was the cornerstone investor in the raising, committing around $3 million.

The capital raising was conducted at the Australia Biotech Invest Conference in Melbourne this week.

It follows the receipt of $1.82 million worth of Commercialisation Australia (CA) grants and a $1.1 million R&D Tax Incentive credit, taking the total new capital contributions for the company this year up to $10 million.

Nexvet plans to use the funds to support further development of its PETisation platform, which involves developing species-specific versions of biological drugs including monoclonal antibodies.

The company’s leading products target chronic pain in dogs and atopic dermatitis in cats. Nexvet has over six antibody programs in development and expects the first product to hit the market within 2-3 years.

Last August, Nexvet signed its first commercial licensing deal, an agreement with Japan's Meiji Seika Pharma covering biologic treatments for canine inflammatory disorders such as arthritis.

BioScience Managers managing director Jeremy Curnock Cook said the company was attracted to Nexvet due to the quality of both its management team and its technology.

“Nexvet’s product portfolio addresses a significant market need in the growing market of companion animal health,” he said. “We are delighted to be supporting such an exciting Australian company on its path to realise its clinical and commercial potential.”