Nexvet raises $2.5m to fund human-to-animal drugs

Nexvet Biopharma has closed a $2.5 million seed financing round, after receiving an investment from the universities-led Trans Tasman Commercialisation Fund (TTCF).

The veterinary biologic drug developer achieved its seed funding goal through a combination of government grants and private investments.

Nexvet now has funding to support the development of its proprietary PETisation technology – a one-step method for producing animal antibody drugs using existing human drugs as a template.

TTCF – a collaboration between Monash University, the University of Adelaide, Flinders University, the University of South Australia, the University of Auckland and Australian Super – led the seed financing round.

As part of its investment, TTCF has nominated a representative – Dr Andrew O'Brien – to join the Nexvet board.

The fundraising comes at a pivotal moment for Nexvet; the company last month signed its first commercial licensing deal covering drugs developed through PETisation technology.

Japan's Meiji Seika Pharma has negotiated exclusive distribution and development rights in a number of Asian countries for treatments for canine inflammatory disorders including arthritis.

Nexvet is also preparing to complete a series of clinical studies into the PETisation technology in 2012 and 2013.

Funds from the financing round will be used to support Nexvet's clinical programs, as well as negotiations for new licensing deals.

Nexvet estimates that the global animal health market is worth around $20 billion, growing at a CAGR of 5% per annum. The company has said there is significant untapped potential in producing biologic drugs for the sector.