Pre-clinical stage biotech company Covagen has raised CHF 42 million ($47.4 million) in a tranched Series B financing with an option to obtain an additional CHF 14 million ($15.8 million). The funding was led by new investor Gimv, which provided CHF 8.3 million ($9.4 million), with participation from new backer Ascent Biomedical Ventures and existing investors. In conjunction with the financing, Gimv partner Dr. Karl Naegle and Ascent partner Avi Kometz, M.D. will join Covagen’s Board.
The proceeds will primarily support the clinical development of Covagen’s lead FynomAb COVA322, an inhibitor for the treatment of rheumatoid arthritis, psoriatic arthritis and other inflammatory diseases. COVA322 is expected to enter clinical trials early next year. Additionally, the new funding will further advance Covagen’s discovery programs in oncology.