– The Purdue University Spinout’s NOV004, the first-ever targeted bone anabolic agent, has shown promise in accelerating fracture healing –
AUSTIN, Texas, (Date TBD) — Research Bridge Partners—a 501 (c) (3) organization that makes formative investments in biomedical startup companies based on the breakthroughs of preeminent innovators at mid-continent research universities—announced that one of its portfolio companies, Novosteo, Inc., closed $5.5 million in Series A financing to further its development of the first-ever targeted bone anabolic agent NOV004.
In August 2019, Research Bridge Partners announced a seed capital investment in the Purdue University spinout co-founded by the father/son team Philip S. Low, the Ralph C. Corley Distinguished Professor of Chemistry, and Stewart A. Low, a former postdoctoral staff member in Purdue’s Department of Chemistry.
The Series A financing subsequently raised by Novosteo, Inc. came from Kairos Ventures, as well as BioCrossroads Ventures, Elevate Ventures and Purdue Research Foundation.
Novosteo, Inc.’s NOV004 has shown promise in live animals in the acceleration of fracture healing when delivered systemically. The compound is unique in that it concentrates at the fracture site while avoiding accumulation in the rest of the body. Proceeds from the financing will be used to advance NOV004 into clinical development that will begin in the first half of 2021.
Bone injuries and disease are one of the most challenging health issues facing all ages, especially for the elderly. Despite the advent of preventive measures, one in three hip fracture patients who are 65 and older will die within a year; many deaths occur as a result of the complications due to slow fracture healing and long-term immobilization.
About 40% of those who survive fractures require assistance to walk, according to the National Institutes of Health. Across the U.S., there are about 6 million fractures annually, 3.5 million emergency room visits and direct health care costs of near $30 billion related to bone injuries. In addition, bone fractures represent 26% of combat extremity wounds.
“Research Bridge Partners’ initial investment, as well as their sweat equity in helping to build out our business infrastructure, have been critical to the company’s evolution,” said Dan Hasler, Novosteo chairman of the board and past chief marketing officer of Eli Lilly and Co.
“Philip and Stewart Low are evidence of the preeminent innovators operating at midcontinent universities and NOV004 the potential impact of their scientific breakthroughs,” said Research Bridge Partners co-founder and chief executive officer Isaac Barchas.
Barchas, who previously served as a member of Novosteo, Inc’s board of directors, now serves as a board observer.
About Research Bridge Partners
Research Bridge Partners, a 501 (c) (3) organization, makes formative investments in biomedical startup companies based on the breakthroughs of preeminent innovators at mid-continent research universities—creating high quality investment opportunities that are sourced from geographies with thinner commercialization resources.
Founded by Isaac Barchas and Reid Hoffman, we use proprietary analytics to identify the less than 1% of academic researchers nationwide whose science and entrepreneurial mindsets are characteristic of successful biomedical startups. We then make seed capital and scaling investments and establish effective corporate structures to create portfolio-ready opportunities for downstream investors. www.researchbridgepartners.org
About Novosteo, Inc.
Novosteo, Inc. is a startup developing and delivering new drugs for the treatment of bone injury and diseases that impact patients’ morbidity, mortality and loss of mobility and productivity associated with bone fractures, bone metastasis and infection. Scientific co-founders Stewart Low and Philip Low of Purdue University have created a proprietary chemistry approach to bone targeting and have discovered novel biologics that accelerate bone regeneration by delivering anabolic agents preferentially to fracture surfaces. With its operations in Indiana, Novosteo has designed a series of fracture-targeted drugs that concentrate a drug’s healing power specifically at the fracture site, thereby greatly accelerating and improving the healing process and minimizing loss of mobility, prolonged time away from work, physical pain/discomfort. The targeting of drug compounds to the fracture microenviroment modifies the pharmacology of non-targeted approaches and allows for improved efficacy and safety.