Regenerative medicine company Histogenics Corporation, announced today the completion of a $49 million round of financing. The syndicate was led by Sofinnova Ventures with participation from additional new investors Split Rock Partners, BioMed Ventures and FinTech GIMV Fund, L.P. Existing investors ProChon Holdings BV, Altima Partners, Foundation Medical Partners, Inflection Point Capital and Boston Millennia Partners also participated in the financing. Proceeds will be used to complete the ongoing Phase 3 clinical program for lead product candidate NeoCart®, which is currently enrolling patients. NeoCart is an autologous neocartilage tissue implant that utilizes the patient’s own cells to regenerate cartilage in patients suffering from cartilage lesions in the knee. Funds will also support efforts to obtain regulatory clearance in the European Union for product candidate VeriCart™, a single-step, cell-free collagen scaffold uniquely designed to be used in conjunction with the patient’s own stem cells, to repair small cartilage defects frequently observed in meniscal and anterior cruciate ligament repair procedures. Garheng Kong, MD, PhD of Sofinnova Ventures and Josh Baltzell of Split Rock Venture Partners will join Histogenics’ Board of Directors. Arnold Freedman of Boston Equity Advisors served as the exclusive placement agent.
Patrick O’Donnell, President and Chief Executive Officer of Histogenics, commented, “We believe the quality of the investors and the significant level of commitment demonstrated in this financing speak to the potential of our product candidates to transform the treatment of cartilage injury with the goal of returning patients to their pre-injury level of activity. Each year, 1.8 million active adults and elite athletes undergo arthroscopy for the diagnosis and treatment of painful cartilage defects in the knee. With continued positive clinical results, we believe our Phase 3 product candidate, NeoCart, has considerable potential as a much-needed treatment alternative for a significant portion of these patients. The successful completion of this financing fully funds the Company to reach key clinical and commercial milestones for NeoCart and VeriCart and allows us to focus our full attention on continued successful clinical and regulatory execution.”
Garheng Kong, MD, PhD, General Partner of Sofinnova Ventures added, “NeoCart has the potential to dramatically change the way knee cartilage injuries are treated. Current treatments for knee cartilage damage frequently do not produce the lasting effects that individuals need to avoid serious knee pain and improve function—preventing them from getting back to their active, daily lives. Published data have shown that patients treated with NeoCart experienced a very durable response that is sustained throughout a period of four years or more. Sofinnova is pleased to support Histogenics’ efforts to receive approval for NeoCart and address this unmet clinical need.”
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