BioWorld International Correspondent

Albireo AB, a company newly spun out from AstraZeneca plc to develop a portfolio of drug candidates in a number of gastrointestinal (GI) indications, banked $27 million in a first closing of a Series A round that will close out at $40 million in the coming weeks.

The move is part of London-based AstraZeneca's previously announced disease area strategy, under which it has realigned all of its R&D objectives. "We are refocusing our research effort. We had determined some priorities within GI research," AstraZeneca spokesman Chris Sampson told BioWorld International. "There were some projects we were not going to advance ourselves."

Within the field of GI research, it decided to exit from the area of functional GI disorders, while remaining active in gastroesophageal reflux disease (GERD). It has three clinical-stage programs targeting that condition. "Those continue to be in our pipeline," Sampson said.

Gothenburg, Sweden-based Albireo is starting life with a molecule in development for chronic constipation that has undergone a Phase I clinical trial, plus three other preclinical programs, focused on functional dyspepsia, irritable bowel syndrome and inflammatory bowel disease, respectively.

It has recruited UK biotechnology industry veteran David Chiswell as executive chairman. Chiswell was a co-founder of Cambridge Antibody Technology (now part of AstraZeneca's MedImmune division), and served as CEO from 1996 to 2002. He served a three-year term as chairman of the UK BioIndustry Association, from 2003 to 2005, and is currently chairman of Vienna, Austria-based Nabriva Therapeutics Forschungs GmbH, an anti-infectives drug developer spun off from Sandoz GmbH, a subsidiary of Basel, Switzerland-based Novartis AG, at the beginning of 2006.

The company's lead molecule will enter a Phase Ib trial shortly, Chiswell told BioWorld International, and the company aims to take it through clinical proof of concept before seeking partners. "We believe it's novel. It's well supported by the small amount of data that have been generated to date," he said.

At present, over-the-counter medications and, in severe cases, surgery, are the main options available to people with chronic constipation. Albireo's molecule will be a prescription drug. It has the advantage of not being absorbed across the GI tract, he said.

Albireo's other programs will require additional preclinical work before clinical studies can commence, he said. The company also aims to broaden its pipeline via in-licensing deals.

The company has recruited a team of AstraZeneca scientists with "deep expertise" in GI disease, Chiswell said. The scientific and operational team, which numbers less than 10 people, is in place. The immediate priority is to hire a chief financial officer and after that, a CEO.

The investment was led by London-based Nomura Phase4 Ventures, which was joined by Munich-based TVM Capital and London-based Scottish Widows Investment Partnership. AstraZeneca retains a "significant minority equity interest" in the new venture. Nomura, TVM and AstraZeneca are all represented on the company's board.