MONTREAL, Jan. 22, 2013 /PRNewswire/ - TVM Life Science Ventures VII today announced an investment into Kaneq Bioscience Ltd. based in Montreal, Quebec. This company is a spin out of Kaneq Pharma Inc., a biotechnology company developing early stage compounds for metabolic diseases and cancer. Kaneq Bioscience Ltd. was specifically created to develop a protein tyrosine phosphatase1B ("PTP-1B") inhibitor for treating type 2 diabetes mellitus. "Other approaches targeting PTP-1B have shown efficacy in the clinic but oral small molecules have remained elusive. Our compound has promise as an orally active insulin sensitizer that can be paired with existing therapies." stated Dr. Daniel Bouthillier, CEO of Kaneq Pharma Inc., who has joined Kaneq Bioscience Ltd. as Executive Chairman. Dr. Cynthia Lavoie, General Partner of TVM Capital Life Science and Board Member of Kaneq Bioscience Ltd. adds: "We are pleased to collaborate with Kaneq Pharma to create a company in Montreal which addresses a huge market need for diabetes patients".
This is the first investment for TVM Life Science Ventures VII, a life sciences venture fund domiciled in Montreal QC, which follows a new investment approach to developing pharmaceutical assets to a human proof-of-concept in single asset companies. This approach has proven to be highly capital efficient through a high degree of outsourcing while creating an opportunity for faster exits through a trade sale to a pharmaceutical player looking to build its pipeline without having to take on legacy companies around the products that appeal to them.
Kaneq Bioscience Ltd. will tap into the rich ecosystem of service providers in the area to bring its asset to human proof-of-concept, including expertise provided by Montreal-based Chorus Canada, an offshoot of global-early-phase drug development network Chorus, an autonomous unit of Eli Lilly and Company. The company is also benefitting from the involvement of Kaneq Pharma management, a highly experienced team with complementary skills in pharmaceutical development.
Notes to the Editors
About TVM Capital Life Science
TVM Capital Life Science is providing venture capital to the international pharmaceutical, biopharmaceutical and medical technology industries with more than 25-years of transatlantic investment track record and in excess of US$1.1bn under management. The Life Science Investment Group's mission is to invest in the development of exciting early stage drug candidates and companies in the medical field that are or aspire to be innovative leaders in their market segment. Since 1984, TVM Capital Life Science made 116 investments in life science companies in Europe and the United States and exited from 85 companies, including 41 initial public offerings on the NASDAQ, and the London, Frankfurt, Zurich and Vienna Stock Exchanges and 25 trade sales and mergers. The Life Science team combines long-standing international investment and company building experience with their track record of dedicated board work, extensive global networks in the world of life science research and product development and a direct knowledge of the local markets. TVM Capital Life Science currently invests from its 7th fund generation, TVM Life Science Ventures VII, with an integrated team of investment professionals based in in Montreal and Munich.
About Kaneq Bioscience
Kaneq Bioscience Ltd, Montreal, is a spinout of Kaneq Pharma, a discovery and early development stage pharmaceutical company formed by former employees of the Merck Frosst Center for Therapeutic Research. This group has extensive drug discovery experience and has been intimately involved in the discovery of several marketed drugs plus novel therapies for hypertension and diabetes currently in clinical development. The focus of Kaneq Pharma is the delivery of high value molecules for validated targets in the areas of metabolic disease and cancer.
SOURCE TVM Capital