Biotech Financing

Fighting Germs in New-Fashioned Ways

By Richard Martin, 9-13-05

	Superbugs never sleep.

One of the scariest fronts in humanity’s war on disease is the proliferation of drug-resistant bacteria – germs that, through mutation and the overuse of common antibiotics, have become super-bugs, untreatable by most available medications. Two northern Colorado biotech companies that are developing new third-generation antibiotics have recently scored big venture investments to compete in this, the hottest market in biotech today.

Last week Replidyne Inc., of Louisville, inked a deal for $62.5 million in late-stage private funding. And later today Aurora-based GlobeImmune Inc. is expected to announce a $34.3 million capital infusion. The pair of deals marks the resurgence of the Boulder-Denver area as the hottest seedbed outside California for biotech companies.

Founded to create the next generation of bacteria-fighting drugs, Replidyne is currently focused on developing a pill version of faropenem daloxate, which it licenses from Tokyo-based Daiichi Suntory Pharma Co. A new antibiotic, faropenem is designed to treat sinusitis, bronchitis, skin infections and “community-acquired pneumonia� – i.e., illness developed outside hospitals. Later this year Replidyne is expected to file a New Drug Application with the U.S. Food and Drug Administration, with clinical trials to follow in 2006.

Started by a trio of CU scientists, GlobeImmune is pursuing a more novel path based around tarmogens, genetically modified yeast cells that help stimulate the body’s immune system to produce so-called “killer T cells� to fight infections. According to the company, tarmogens can be easily manufactured and engineered to respond to new germs, do not provoke an immune-system response in humans, and help bolster powerful T-cell defenses against target bacteria.

The two financing deals come two months before BioWest 2005, the big Rocky Mountain bioscience conference in Denver, Nov. 8 & 9.

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