RESEARCH TRIANGLE PARK, N.C., May 24, 2017 /PRNewswire/ -- Pappas Capital, a life science venture capital firm, announced today that its new fund, Pappas Ventures V, recently invested in OrphoMed, a clinical stage company that is developing best-in-class therapies for treatment of inadequately-controlled gastrointestinal disorders. The investment in OrphoMed is the first investment by the new Pappas Ventures fund.
The $39 million Series A funding round was led by New Enterprise Associates and also included Takeda Ventures, Relativity Healthcare Partners and the Mario Family Fund. OrphoMed's lead program is aimed at treating irritable bowel syndrome with diarrhea (IBS-D), a disorder that affects the intestinal tract and causes cramping, abdominal pain, bloating, gas and diarrhea. "IBS-D is a profoundly debilitating condition for millions of people," said Art Pappas, Managing Partner of Pappas Capital. "We believe OrphoMed has the potential to address this unmet medical need, with a product that has a novel mechanism of action and a significant safety benefit over current options." Pappas joined the OrphoMed board in connection with the Series A financing.
About Pappas Capital
Founded in 1994, Pappas Capital invests exclusively in the life sciences sector – biotechnology, biopharmaceuticals, drug delivery, medical devices and related ventures – across the United States and Canada. Since 2014, three portfolio companies founded or co-founded by Pappas have been sold to large pharmaceutical companies: CoLucid Pharmaceuticals, bought in March 2017 by Eli Lilly for nearly $1 billion; Afferent Pharmaceuticals, for which Merck paid $500 million upfront and $750 million in milestones; and Lumena Pharmaceuticals, purchased by Shire for more than $300 million.
Pappas Capital has raised more than $500 million in capital and has guided the launch and/or development of more than 70 companies. A dozen of them have either gone public or been acquired since 2011, including the three listed above, and Ultragenyx Pharmaceutical (IPO), TESARO (IPO), Plexxikon Inc. (acquired by Daiichi Sankyo), LEAD Therapeutics (acquired by BioMarin Pharmaceutical), TYRX (acquired by Medtronic), Chimerix (IPO) and Syndax Pharmaceuticals (IPO). For more information about Pappas Capital, please visit www.pappas-capital.com.
Ford S. Worthy
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SOURCE Pappas Capital