Aerovate Therapeutics captures $72.6m series A

Aerovate Therapeutics, a US-based pulmonary disease treatment developer, closed a $72.6m series A round yesterday featuring spinout-focused investment firm Osage University Partners.
The round was led by Sofinnova Investments with further contributions from Atlas Venture, Cormorant Asset Management, Surveyor Capital and undisclosed existing investors.
Founded in 2018, Aerovate Therapeutics is working on a dry powder inhaler for treating pulmonary arterial hypertension (PAH), a rare chronic condition that causes higher blood pressure as small arterial branches in the lungs become constricted due to a proliferation of blood cells.
Aerovate’s inhaler, dubbed AV-101, is a formulation of an existing cancer growth blocker called imatinib. An oral version of the drug failed phase 3 clinical testing, although it did demonstrate significant efficacy.
Aerovate hopes inhaling the drug will spur direct action on the lungs to treat the constricted tissues without transferring through the blood into unintended organs as with its initial concept.
The capital will help bring AV-101 through clinical efficacy testing before a registrational study due to begin in the first half of 2021.
Benjamin Dake, venture associate at RA Capital Management, founded Aerovate and now serves as its president. He completed a PhD in cell, molecular and developmental biology at Tufts University of School of Medicine, before joining RA Capital Management.
RA Capital co-developed Aerovate’s technology and supported the company through its incubator, Carnot Pharma. It is unclear whether any intellectual property was licensed from Tufts – GUV has reached out for clarification and will update as appropriate.
Aerovate Therapeutics had already secured $2.5m in debt financing and other securities in early 2020, according to a regulatory filing.
Joshua Resnick, managing director of RA Capital and chairman of Aerovate, said: “With the support of the high calibre syndicate around the table, I believe Aerovate is poised to move this important treatment into the clinic immediately.
“This financing keeps the company on a rapid path towards offering this potentially transformational therapeutic to patients with real need.
“AV-101 strives to provide PAH patients with the benefits of a disease modifying drug – in an easy-to-use format, free from the inconvenience of nebulized products – ­without the cancer-drug-like side effects of the oral version.”