$16 million funding for Israeli-Australian biotech company

Azura Ophthalmics has received US$16 million in Series B funding to develop treatments for meibomian gland dysfunction (MGD).

The funding from Brandon Capital’s Medical Research Commercialisation Fund (MRCF), TPG Biotech, OrbiMed and Ganot Capital, will allow the Israeli-Australian company to move into its next clinical stage in the development of novel treatments for MGD — an eye condition where the Meibomian glands becomes dysfunctional, which results in rapid evaporation of the tear film.

Azura Ophthalmics Chief Executive Officer Marc Gleeson said, “Meibomian gland dysfunction is responsible for at least 70% of dry eye cases and affects about 300 million people worldwide, yet despite significant efforts there are no pharmaceutical treatments available for this condition. Using our novel therapy, Azura has generated promising results in a phase 1 study in MGD sufferers. We are therefore optimistic that Azura’s treatment could one day provide the first effective treatment for MGD sufferers.”

MGD sufferers represent one of the largest and most underserved patient segments in ophthalmology. If left untreated MGD will alter the tear film, causing eye irritation, inflammation and severe dry eye disease (DED). Following initial clinical success with their lead compound, Azura Ophthalmics will undertake Phase 2a clinical testing of this new formulation in approximately 120 patients with MGD.

The Israeli-headquartered company was founded in Tel Aviv in 2014. All further research, clinical trials and the development of Azura’s Ophthalmics drug treatment will be undertaken in Australia.

MRCF Chief Executive Officer Dr Chris Nave noted, “Australia is an accepted world leader in medical research. However, historically, a lack of investment funding in the life sciences sector has resulted in Australian medical discoveries leaving our shores to gain access to the capital required for further development. The government’s R&D tax incentive and the introduction of the $500 million Biomedical Translation Fund are addressing this problem and are attracting foreign life science companies like Azura Ophthalmics to Australia, stimulating the industry locally, creating jobs and keeping our talented clinicians and scientists, and their research, in Australia.”

Indeed, Sydney-based CEO Marc Gleeson is leveraging these incentives to bring innovation home. As Gleeson noted, “Australia has an attractive regulatory environment for early-stage clinical trials and the government’s R&D tax incentive, which sees eligible companies undertaking research and development in Australia receive a refundable tax offset, helps preserve valuable capital.  Azura Ophthalmics was established in Israel, which is highly renowned for its innovation ecosystem. The company is now looking to take advantage of Australia’s clinical research excellence and the incentives that support investment in Australian innovation.”