Tranzyme Pharma closes new $20M financing

Tranzyme Pharma, a US company developing small-molecule drugs for the treatment of gastrointestinal and metabolic diseases, has completed a new round of private financing, raising a total of $20.0 million. This was led by existing investors HIG Ventures, Thomas, McNerney & Partners, Quaker BioVentures, and BDC Venture Capital.

Tranzyme intends to use the proceeds to further advance clinical development of its breakthrough GI drugs. Its lead products are first-in-class drugs directed at modulating ghrelin and motilin receptors in the GI tract. The company recently initiated two Phase IIb clinical trials to test the efficacy and safety of its first product, TZP-101, an intravenous ghrelin receptor agonist being investigated for the treatment of severe gastroparesis and post-operative ileus. In July 2007, the Food and Drug Administration granted the drug fast-track designation for severe gastroparesis.

The firm's pipeline also includes TZP-102, an oral ghrelin agonist for the treatment of mild-to-moderate (chronic) gastroparesis and other functional GI disorders. In addition, the Company is developing a motilin antagonist, TZP-201, for moderate to severe diarrhea, and a ghrelin antagonist, TZP-301 for obesity and metabolic syndrome.