Staff Writer

Cellular Genomics Inc. raised $22.3 million in the initial close of a Series C round of financing to move its preclinical products into human studies.

"We've succeeded in taking a very powerful chemical genetics technology platform and, at least from the outset, leveraged it for drug discovery and development," Cellular Genomics President and CEO Louis Matis told BioWorld Today. "We're coupling this platform with a unique small-molecule drug discovery infrastructure that encompasses medicinal and high-speed analogue chemistry, and that has allowed us to very rapidly generate potent and selective lead compounds against compelling targets."

The Branford, Conn.-based company is using its chemical genetics platform (ASKA, or Analogue Sensitive Kinase Allele technology) to discover and develop kinase and other signal transduction inhibitors, while its small-molecule drug discovery process is driven by chemical libraries generated through its High-Throughput Accelerated Lead Optimization (HALO) platform.

"The technology really provides us with unique insights into kinase biology, and that enhances our drug discovery programs to give us key competitive advantages," Matis said. "It allows us to determine the therapeutic index of inhibiting a particular kinase in vivo, to define any target-based side effects of inhibiting the target and gives us information that allows us to select the optimal candidates to bring forward into the clinic."

He said the quick pace at which Cellular Genomics integrated its core technology with discovery research to find active compounds attracted the latest investor interest. The company expects to push the third-round funding to about $30 million in the near term, he said, adding that the most recent funds are expected to last through 2006. The company has raised about $50 million to date, including the first tranche of the Series C.

The latest proceeds are earmarked for advancing into the clinic programs in cancer, angiogenesis and autoimmune/inflammatory diseases.

"We've demonstrated very potent and selective inhibition of our kinase targets preclinically, and demonstrated that our compounds have excellent drug-like and pharmacologic properties in vivo," Matis said, adding that the cancer and angiogenesis products have shown evidence of preclinical efficacy in tumor models. "One of the exciting aspects of each of these programs is that the compounds we are taking into the clinic really have potential across multiple indications in broad areas of cancer, angiogenesis and autoimmune/inflammatory diseases."

Down the road, he said the chemical genetics technology would provide for a long-term drug discovery engine to generate an expanded pipeline. But Cellular Genomics first plans to proceed with clinical development in indications expected to most quickly generate clinical proof of concept. At that point, Matis said the company intends to partner two of its three programs. Clinical plans are scheduled to begin in 2005, with the remaining internal program expected to move into Phase II the following year.

"With the Series C funds, we intend to marshal our resources to focus them on the development of these programs," Matis said, "so we intend to build capabilities in regulatory and clinical [matters] to see us deliver on the clinical promise of these programs."

The private equity round was led by Lilly BioVentures, of Indianapolis, and included new investments from Coastview Capital, of Los Angeles, and Emerging Technology Partners, of Rockville, Md. Returning investors included Connecticut Innovations, of Hartford; Flagship Ventures, of Cambridge, Mass.; MPM Capital, of Boston; and Vector Fund Management, of Deerfield, Ill.

Simultaneous with the funding, two venture capital firms added representatives to Cellular Genomics' now seven-person board: Nick Colangelo, Lilly's managing director, and Douglas Reed, Vector's managing director.