Proacta raises $35M to fund its PR-104 development

Proacta, a clinical stage biotechnology company first founded in New Zealand, has completed a $35.0 million series B financing. The new funding will take the firm's lead compound, PR-104, through the next phase of clinical development and support the discovery and development of additional compounds.

Proacta, which has now moved its commercial operations to the USA, is developing a new generation of cancer drugs that uniquely target physiological attributes of solid tumors. It lead clinical candidate, PR-104, is a pro-drug compound that is selectively activated in hypoxic (low oxygen) cells of tumors, killing those cells as well as surrounding tumor cells ("bystander effect") which have more normal levels of oxygen. PR-104 has the potential to be less toxic and more potent than current therapies. In addition, in combination with current chemotherapy and biologic regimens, it offers the promise of improving current cancer treatments, according to the company.

The new investors are Clarus Ventures, which led the round, and Delphi Ventures. The existing investors are Alta Partners, GBS Venture Partners (Australia) and New Zealand Venture Investment Fund (NZVIF) backed-New Zealand funds No 8 Ventures and Endeavour iCap, as well as pharmaceutical companies Genentech and Roche.