Modus Therapeutics Secures SEK 140 Million in Funding Led by HealthCap to Advance Sevuparin for Sickle Cell Disease Treatment
Modus Therapeutics, a company focused on developing innovative treatments for high unmet medical need diseases, particularly sickle cell disease (SCD), has successfully secured a significant funding round. The financing, led by new investor HealthCap, a European venture capital firm specializing in breakthrough therapies for diseases with highly unmet medical needs, amounts to SEK 140 million.
HealthCap’s investment in Modus Therapeutics includes SEK 60 million in a series A preferred financing. Concurrently, existing shareholders have converted outstanding convertible notes into shares, bringing the total equity investment and conversion to over SEK 140 million. This substantial funding will be utilized to continue the clinical development of sevuparin, Modus Therapeutics’ lead candidate drug, specifically for the treatment of sickle cell disease.
Sevuparin is an innovative, proprietary polysaccharide drug with anti-adhesive, anti-aggregate, and anti-inflammatory effects due to its multimodal mechanism of action. Currently undergoing evaluation in a Phase II clinical study, sevuparin has the potential to restore blood flow and prevent further microvascular obstructions in children and adults with SCD.
Ellen K. Donnelly, PhD, CEO of Modus Therapeutics, expressed her appreciation for the support from HealthCap and the continued commitment of existing shareholders. “The funds we have raised will enable us to complete our current Phase II trial with sevuparin in patients with SCD and initiate a new program focused on a subcutaneous formulation,” she stated.
HealthCap Partner Mårten Steen highlighted the potential of sevuparin as an important treatment for SCD patients. “HealthCap sees ample opportunities for Modus Therapeutics’ orphan drug candidate sevuparin to be a significant treatment for SCD patients. We look forward to the next important step in the company’s development, which is the completion of the ongoing Phase II study and preparation for pivotal studies,” he noted.
This funding marks a significant milestone for Modus Therapeutics, enabling the company to advance its clinical development programs and bring sevuparin closer to becoming a viable treatment option for patients with sickle cell disease. The support from HealthCap and existing shareholders underscores the potential of sevuparin and the company’s commitment to addressing high unmet medical needs.
In a separate development, Modus Therapeutics also secured bridge financing of up to SEK 5 million from Karolinska Development, its largest shareholder, in November 2024. This funding allows Modus to initiate a recently approved Phase 2a study in chronic kidney disease, further expanding the potential applications of sevuparin.
Viktor Drvota, CEO of Karolinska Development, emphasized the importance of this funding for Modus Therapeutics’ research momentum. “With this funding, Modus now has the opportunity to maintain a good pace of development and start the recently approved Phase 2a clinical trial,” he said.
Modus Therapeutics’ research and development efforts are gaining momentum, with sevuparin showing promise as a potential treatment for several major healthcare needs, including sepsis/septic shock and other disorders with severe systemic inflammation, as well as states of anemia related to chronic inflammation such as kidney disease. The company’s progress and the support from investors like HealthCap and Karolinska Development highlight the potential of sevuparin to make a significant impact in the treatment of these conditions.