Diabetes company Atrogi has completed a SEK 90 million rights issue for the continued in-house development of a new class of diabetes drug
The Swedish diabetes company Atrogi has recently completed a rights issue, raising approximately SEK 90 million. Among the anchor investors is South Korea’s largest venture capital company Korea Investment Partners (KIP).
“We see the investment by such a strong and experienced player as KIP as powerful confirmation of our groundbreaking research and the market potential for the drug we are developing. In addition, being able to do so in the middle of the corona crisis also sends a strong message,” says Alexandra Ekman Ryding, CEO, Atrogi.
Atrogi is developing a new drug based on a completely new and unique principle for the treatment of diabetes type 2. The patented substance stimulates glucose uptake in muscle cells and is a treatment that is insulin-independent, a significant advantage as the insulin system functions less effectively in diabetics. Pre-clinical trials show several positive effects over and above the primary goal of reducing blood sugar levels in patients.
Atrogi’s drug candidate is currently undergoing pre-clinical development and with the new capital injection, the plan is to carry out a clinical Phase 1 study in 2021. This is a significant and important stage in the process of developing a whole new class of oral type 2 diabetes drugs.
“Current treatments for type 2 diabetes in large part aim to overstimulate the already dysfunctional insulin-based system, and seldom work well. Over time, this means poor efficacy and a risk of serious illness. Our treatment principle is based on a fully functional system in the body which means that these problems can be avoided,” says Professor Tore Bengtsson, founder of Atrogi.
About Korea Investment Partner (KIP)
Korea Investment Partners is Asia’s leading venture capital and private equity firm with 46 active funds and over $2.9B of assets under management. KIP invests in early stage ventures to growth stage companies, across different industries. Recent investments include Vaccitech (UK), PDC Line Pharma (Belgium-France), EnlivexTherapeutics (NASDAQ: ENLV), and Inovio Pharmaceuticals (NASDAQ: INO). KIP operates globally from its Seoul headquarters, with other offices in Silicon Valley, Singapore, and China (Shanghai, Beijing, Chengdu, and GuangZhou).
