VCs sell Therachon to Pfizer for $810m

Katharine Hidalgo
10 May 2019

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Several VCs have sold their stakes in drug discovery and development company Therachon Holding to Pfizer.

Investors selling their stakes include Versant Ventures, Inserm Transfert Initiative (ITI), New Enterprise Associates, OrbiMed, BPI France, Novo Holdings, Cowen Healthcare Investments and Tekla Capital Management.

Pfizer will acquire Therachon for $340m, with $470m in additional payments contingent on the achievement of key milestones in the development and commercialisation of Therachon's lead drug for the treatment of achondroplasia. The drug complements Pfizer's existing research portfolio in rare diseases.

Prior to the closing of the transaction with Pfizer, Therachon will spin off its development programme for short bowel syndrome.

Previous funding
In 2014, ITI and Versant invested in a seed round for the company.

OrbiMed led a $35m funding round in 2015 and was joined by ITI, Versant and new investor New Enterprise.

BPI France participated in a $5m series-A for Therachon in 2017 and was joined by existing investors OrbiMed, ITI and Versant.

Novo Holdings, which manages the Novo Nordisk Foundation's investment assets, led a $60m mezzanine investment in 2018. New investors Cowen Healthcare, Pfizer Ventures and funds managed by Tekla also participated. Following the investment, the company acquired GlyPharma Therapeutic, a Montreal-based developer of gastro-intestinal ailments.

Company
Founded in 2014, Therachon is focused on the discovery and development of treatment for severe, rare conditions with significant unmet need. The company has assets in development for the treatment of achondroplasia and short bowel syndrome. The company is headquartered in Basel with research labs in Nice and business operations in New York. It employs approximately 35 people.

People
Versant Ventures – Tom Woiwode (managing director, Therachon chairman).
Pfizer – Mikael Dolsten (chief scientific officer, president); Seng Cheng (senior vice-president, chief scientific officer).
Therachon Holding – Luca Santarelli (CEO).

Advisers
Company – Goldman Sachs (M&A); Cooley (legal); Homburger (legal).
Acquirer – Arnold & Porter (legal); Lenz & Staehelin (legal).