NEW YORK--(BUSINESS WIRE)--Olatec Therapeutics LLC (“Olatec” or the “Company”), a leader in developing NLRP3 inhibitors, announced the completion of the Company’s $40 million Series A round financing, the final closing of which was led by Sanders Morris Harris (“SMH”). Participation in the round came from both existing investors as well as new investors identified by each of Sanders Morris Harris, Advection Growth Capital and the Company. Proceeds will be principally used to advance Olatec’s lead compound, dapansutrile, into later stage clinical development.
Founder of SMH, Don Sanders, and its Chairman, George Ball, in a joint statement said “Olatec has demonstrated its ability to bring to a later stage clinical trial its oral anti-inflammatory inhibitor, dapansutrile, a potentially major pharmaceutical medical innovation. Upon completion of its ongoing trials, the Company could be poised for even greater value creation. We are pleased to be part of Olatec’s progress in advancing dapansutrile towards its potential initial commercial uses.”
Also commenting on the completion of the Series A financing, Greg Kennedy, the Founder and Managing Partner of Advection Growth Capital said, "Olatec's mission to meaningfully improve patient outcomes in major diseases with dapansutrile and its talented team of drug developers is the reason we are supporting Olatec with our own capital and why we were pleased to introduce the Company to investors in our network."
Concurrent with this financing, investor Kenneth Wells MD, who was introduced to the Company by SMH will be joining Olatec’s Board of Directors subject to all requisite approvals. Dr. Well’s, who is President of Alken Health Resources, said: “NLRP3 inhibitors are a highly sought-after pharmaceutical target given their critical role in innate immune systems. Olatec is a leader in the NLRP3 area through the development of oral dapansutrile and I look forward to helping the drug achieve its potential as a significant medical breakthrough for patients suffering from major inflammatory diseases.”
Founder and CEO, Damaris Skouras, commented, “We are very pleased to welcome Don Sanders and George Ball and the other highly regarded SMH and Advection investors in the A-9 Round, and particularly welcome Ken Wells as both an investor and prospective Board member. Ken brings extensive experience in support of Olatec’s continued growth and drug development, including working with payors, risk management, and board expertise.”
Dr. Ken Wells is the Chief Medical Officer for the Marsh McLennan Agency Southwest. Previously he was a Board member of Baylor St. Luke’s Medical Center Houston, serving on the Executive Committee and as Governance Committee Chair. Over the past two decades, Dr. Wells has served on nine not-for-profit and six advisory corporate boards with executive, governance, nominations, HR, and quality committee responsibilities. Dr. Wells holds a medical doctorate and master’s degree in public health from the University of Texas Health Science Center, Houston. He has earned a master’s degree in management from Northwestern University and a bachelor’s degree in pharmacy from Texas Southern University. He completed a fellowship in primary care policy with the U.S. Department of Health & Human Services and residencies in occupational and family medicine at the University of Texas Health Science Center and aviation medicine instruction at the U.S. Army School of Aerospace Medicine.
About Olatec Therapeutics LLC
Olatec is a privately held, Phase 2/3 clinical-stage biopharmaceutical company developing a platform of oral NLRP3 inhibitors to treat and prevent a broad spectrum of acute and chronic inflammatory diseases known to be mediated by IL-1 (see list of clinical trials to-date, here). In addition to the lead compound, dapansutrile, Olatec’s platform of proprietary compounds includes approximately 60 analogues (OLT Analogues) being screened as viable drug candidates. A portfolio of intellectual property registrations protecting Olatec’s compounds consists of over 130 patents granted, covering dapansutrile and OLT Analogues. Olatec’s drug development team is comprised of experienced management and international experts in translational medicine with unparalleled expertise in inflammation and immunology and has been involved in the discovery and development of first-line inflammation treatments in the market today. For more information, please visit http://www.olatec.com
About Sanders Morris Harris LLC
Sanders Morris Harris LLC is a privately owned, dually registered broker dealer and Registered Investment Advisory firm established in 1987. Tectonic Financial, Inc., its parent company has over $5 billion in client assets under management. Other affiliated entities include T Bank, N.A., one of the leading specialty lending banks in Texas, Tectonic Advisors, LLC an SEC registered investment adviser that primarily focuses on institutions, families, and individuals, and HWG Insurance Agency LLC, a full service personal and commercial insurance agency. Together this group provides a diverse suite of financial services – commercial banking, family office, institutional trading, investment and risk management, and trust options.
About Advection Growth Capital LLC
Advection Growth Capital is a merchant bank focused on investing in and advising private companies with high growth potential. When investing, Advection brings its advice, network and other investors for the benefit of all constituencies. Advection seeks to distinguish itself through trusted advice rooted in deep client and investor knowledge, alignment through investment, and broad commitment over the long term. The principals and employees of Advection are registered representatives of Rosenblatt Securities Inc., a member of the NYSE, SIPC and FINRA.
Dapansutrile (lab code: OLT1177®) is an investigational small molecule, new chemical entity that specifically binds to and blocks NLRP3 (nucleotide-binding and oligomerization domain [NOD]‑, leucine rich repeat-, pyrin domain-containing 3), the sensor molecule integral in the formation of the NLRP3 inflammasome. Inflammasomes are multiprotein complexes involved in intracellular surveillance of danger signals that trigger an intense inflammatory response, via generation of bioactive IL-1β and IL-18 through caspase-1 activation. Dapansutrile has been shown to prevent the formation of the NLRP3 inflammasome, which in turn inhibits the production of IL-1β and IL‑18. NLRP3 is one of the most characterized inflammasome sensors due to its involvement in a wide range of disorders, including sterile inflammation, infections, and rare genetic autoimmune syndromes. Dapansutrile has been well tolerated and shown to improve clinical outcomes in patients with acute gout flare (see The Lancet Rheumatology) and heart failure (see Journal of Cardiovascular Pharmacology). Dapansutrile has also been observed to have anti-inflammatory properties and other promising activity in a broad spectrum of over 20 preclinical animal models including arthritis, asthma, acute myocardial infarction (AMI), heart failure, contact dermatitis, multiple sclerosis, melanoma, pancreatic and breast cancers, spinal cord injury (SCI), Parkinson’s and Alzheimer’s disease. For a complete list of Olatec’s original publications on dapansutrile in various preclinical and clinical disease areas, please refer to Olatec’s publication page, here.
Disclaimer & Forward-looking Statement
This press release is not an offer to sell and is not soliciting an offer to buy any equity interests in the Company. The information contained herein is being provided for information purposes only. The Company makes no express or implied representation or warranty as to the completeness of this information. Any forward-looking statements contained in this release are based on assumptions made by Olatec at the time this Press Release was prepared. Any forward-looking statement contained in this Press Release is subject to known and unknown risks, uncertainties and other factors that may be materially different from those contemplated in such forward-looking statements. All information with respect to industry data has been obtained from sources believed to be reliable and current, but the accuracy thereof cannot be guaranteed by the Company. Olatec does not undertake any obligation to update or revise the forward-looking statements contained in this Press Release to reflect events or circumstances occurring after the date this Press Release was prepared, or to reflect the occurrence of unanticipated events.