Artizan gets local support

An $11 million investment round for the Science Park-based firm includes funding from Biohaven Therapeutics

NEW HAVEN — A biotechnology company based in the city’s Science Park complex focused on developing treatments for inflammatory diseases of the human digestive tract has raised $11 million, including an investment from another Elm City health sciences company.

Artizan Biosciences will use the money it raised to continue advancing the preclinical research and development of its lead treatment for inflammatory bowel disease, which is anticipated to enter clinic testing in 2022. Some of the money will also be used by the company to pursue other disease targets.

Biohaven Therapeutics, which is located on Church Street, was one of several new investors in Artizan Biosciences. Connecticut’s technology investment agency, Connecticut Innovations, was also a new investor in the latest funding round.

“We are thrilled that Biohaven recognizes the potential of our proprietary discovery platform to identify and characterize disease-driving bacteria and develop therapies for unmet medical needs,” James Rosen, president and chief executive officer of Artizan Biosciences, said in a statement. “This adds to our positive momentum as we continue driving our lead IBD program toward the clinic.”

Dr. Donnie McGrath, Biohaven’s chief of corporate strategy and business development, said “Artizan’s approach holds promise to develop potentially curative treatments for patients with IBD, as well as treatments for a variety of neurological diseases.” McGrath will join Artizan’s board of directors as part of Biohaven’s investment in the company.

Biohaven already has one drug approved by the federal Food and Drug Administration, which is being sold under the brand name Nurtec and is used to treat migraine headaches. The company has invested in other local biotech companies before, acquiring a 42 percent stake in Kleo Pharmaceuticals before buying the remaining shares in the privately-held company early this year.

In addition to bringing Biohaven on board as an investor, Artizan has also entered into an option and license agreement with the company. The deal is aimed at developing and commercializing Artizan’s inflammatory bowel disease treatments in the United States.

One of Artizan’s founders, Noah Palm, is an assistant professor of Immunobiology at the Yale’s School of Medicine.

As many as 1.6 million Americans suffer from inflammatory bowel disease, which includes Crohn’s disease and ulcerative colitis. Most of those individuals who suffer from inflammatory bowel disease are diagnosed before the age of 35, according to the Crohn’s and Colitis Foundation.

Biohaven has the rights to exercise an option on up to three inflammatory bowel disease product candidates under the terms of the deal. Artizan is eligible to receive payments each time Biohaven exercises one of those options.

In addition, Artizan will receive milestone payments from Biohaven based on the market potential of each drug candidate, as well as royalties.