GlycoVaxyn, a spin-out of the Swiss Federal Institute of Technology (ETH), yesterday declared the CHF11.5m (€6.9m) Series A financing, which has come courtesy of its existing investors Sofinnova Partners and index ventures, both of whom significantly upped their investment in the budding company from their original CHF1m last year.
GlycoVaxyn is developing a broad portfolio of bioconjugate vaccines based on its proprietary glycoprotein technology, which greatly simplifies the production process by cutting out entire process steps and significantly reduces production costs.
The technology essentially exploits E.Coli bacteria in the production procedure, using it for protein glycosylation and thus removing multiple fermentation and processing steps common in the traditional manufacture of conjugate vaccines.
Current state-of-the-art manufacture involves two fermentation runs and four purification steps; the GlycoVaxyn process requires just one fermentation run and a single purification step.
GlycoVaxyn's technology enables the in vivo synthesis of the bioconjugates, with saccharides being attached to different proteins to allow the manufacture of 'designer' bioconjugates that can be used as novel vaccines. These vaccines can then induce 'killer' antibodies that protect patients against disease.
By greatly simplifying the production process for immunogenic glycoproteins and thus reducing costs, GlycoVaxyn's technology could open up keys markets that have generally been seen as inaccessible.
The company highlights developing countries with economies that are unable to afford conventional conjugated vaccines as a particular opportunity, as well as industrialised countries still lacking vaccines for a number of severe bacterial infections, and indications which traditional vaccine technology cannot address.
The Swiss biotech is targeting common, severe bacterial infections, with its lead candidates currently in pre-clinical development and serving as proof-of-concept for the enabling technology. Toxicology studies and Phase 1 trials for these indications are expected to begin in 2009.
The cash boost announced by the firm will be put towards advancing the company's portfolio of vaccines and completing preclinical development of its lead candidates, two lipopolysaccharide bioconjugates that taget enteric diseases, currently in animal studies and due to complete in 2008.
The proceeds will also be used to optimise the production process and advance the company's portfolio as a whole, as well as to establish a good manufacturing practice (GMP) compliant production process to eventually be employed by contract manufacturing organisations.
Although GlycoVaxyn's technology has generated "concrete interest from major pharmaceutical companies" according to company co-founder Urs Tuor, the firm decided to develop the technology in its own right and create maximum value for its shareholders.
The plan is for the company to work with vaccine candidates through clinical proof-of-principle and then license out to partners at the Phase II/III stage, though the firm will also develop certain candidates in-house through to commercialisation.
While conjugated vaccines are the most straightforward application for bacterial glycosylation, the company has ambitious plans, said Tuor.
Eventually the company hopes to be able to stretch the technology and possibly work on therapeutic vaccines for cancer treatment and human therapeutic glycoproteins should appropriate partnering opportunities present themselves.
This latest sizeable round of financing represents a "quantum leap" for the company according to Tuor, allowing it to move to dedicated premises and attract highly respected industry figures such as vaccine expert Michel Gréco, who has been appointed chairman of the company's board of directors.
According to the company, 25 per cent of the global vaccine market comprises conjugated vaccines, with 2006 sales totalling over €2.5bn.
Despite feeling unable to comment on the potential market share this new technology could win GlycoVaxyn, Tuor did say he believed the platform could make a "highly significant" impact on the vaccine landscape, and with a technology that promises to cut costs and make the entire production process more straightforward, it sounds like Tuor's confidence is well-placed, and is clearly shared by the company's blue chip investors.
