Money

Investors oversubscribe funding round for firm behind life-saving gut infection drug



MGB Biopharma has announced its latest funding round to support a drug that fights deadly gut infections has been over-subscribed.

Archangel Investors led the round which included the Scottish Investment Bank , Barwell and TriCapital Investors, all existing investors.

The pioneering company based in Bellshill is developing anti-infectives which aim to tackle the problem of antibiotic resistance worldwide. Its discovery was made during research at the University of Strathclyde.

 

Its new funding will allow MGB to complete its ongoing Phase IIa clinical trial with lead antibiotic MGB-BP-3 and prepare for the next stages of its development and to progress other programmes through to H2 2020. 

An oral formulation of MGB-BP-3 is being developed specifically for the treatment of  Clostridium difficile -associated disease (CDAD). MGB-BP-3 is the only antibiotic that is powerful and fast enough to kill  C. difficile in the first few hours of exposure. It is very effective against the most virulent strain of  C. difficile , BI/NAP1/027, which is largely resistant to current therapy.

CDAD is a life-threatening infection of the large intestine and is the most frequent cause of diarrhoea in hospitals and care homes. In the US there are almost half a million cases every year leading to around 30,000 deaths.

 

MGB Biopharma’s ongoing Phase IIa trial is assessing the safety and efficacy of incremental doses of MGB-BP-3 in patients with CDAD over 10 days 10 days with a follow-up of up to eight weeks. Patients are being recruited in Canada and the US and headline results are anticipated in Q4 2019.

Dr Miroslav Ravic, CEO of MGB Biopharma, said: “We are delighted to have secured additional financing from both new and existing investors, who have demonstrated their confidence in the progress of our Phase IIa study. Given its unique properties, we remain confident that MGB-BP-3 could become a new paradigm for the treatment of CDAD, a potentially life-threatening infection.”

 

Dr Sarah Hardy, Chief Investment Officer at Archangels, said: “There remains a desperate need for novel treatments in our armoury to treat  C. difficile  infections.  The work that MGB Biopharma is undertaking is both important and innovative and the results that have been achieved so far have been very encouraging.”

Kerry Sharp, Director of Scottish Investment Bank, said: “Scotland hosts one of the most sizeable and vibrant life sciences communities in Europe. As one of those community companies, MGB Biopharma is at an exciting stage as it progresses through its Phase IIa clinical trial.”



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