BioVersys announces CHF 19 million financing round to advance novel AMR candidates into clinical development

01.09.2020 09:00, Isabelle Mitchell

BioVersys completed a CHF 19 million Series B financing round to advance its two lead assets of infectious disease candidates into first-in-human clinical trials. The Basel-based startup has also strengthened its board with the appointment of Dr. Eduard Holdener, former Executive Chairman of the Board of Directors at Novimmune S.A. This Series B complements the CHF 16.5 million of non-dilutive funding raised in 2019.

BioVersys was founded in 2008 and was a Venture Kick winner in the same year, a Venture Leader in 2008 and 2016, and one of the TOP 100 Swiss startups for three consecutive years (2011-2013). The privately owned, multi-asset Swiss pharmaceutical company focuses on developing small molecules for multidrug-resistant bacterial infections with applications in Anti-Microbial Resistance (AMR) and targeted microbiome modulation. AMR is one of the greatest global healthcare threats and unmet medical need, already killing more than 750,000 people every year and potentially 10 million people annually by 2050 in the absence of novel life-saving treatments.

This CHF 19 million Series B financing is a significant achievement in the field of AMR and will enable BioVersys to further develop its unique AMR-fighting pipeline with two lead candidates poised to enter into clinical Phase 1 this year.

“As the world struggles with the challenges brought on by the COVID-19 pandemic, the threat of the next pandemic is already on our doorstep in the form of AMR. The mission of BioVersys to bring life-saving novel antibiotics to patients suffering from drug-resistant infections is critical for the survival and viability of global healthcare systems. With this significant financing round, we take the next important steps of progressing to clinical development and eventually delivering these urgently needed medicines to patients. I want to thank our shareholders for their trust and faith in the management team, our mission, and the vision of BioVersys,” said Dr. Marc Gitzinger, CEO and co-founder of BioVersys.

BioVersys’s Series B fundraising was supported in part by goetzpartners securities Limited and Mirabaud Securities Limited, and it complements the CHF 16.5 million of non-dilutive funding raised in 2019 from CARB-X and the IMI2-JU/European Union.

Marc, you and your team just raised CHf 19 million. How has COVID-19 affected this fundraising round?
COVID-19 showed how vulnerable our society is to infectious diseases and how important it is to have working medicines against such threats. Antimicrobial resistance (AMR) is a silent pandemic that by >50% of the Swiss, according to a recent survey by the insurance company CSS, is seen as a serious risk to their personal health. The AMR sector is challenging for scientific and economic reasons, but COVID-19 has certainly helped to get the focus back on infectious diseases and healthcare. Nevertheless, COVID-19 makes fundraising more challenging. During the short stock market crash, we felt a short slowdown of investor interest, and while things are back on track now, it is harder to establish new contacts to investors without the direct personal interaction. Another big challenge for internationally operating companies is the different lockdowns around the globe, which impact development timelines and, thus, can cause delays in reaching the next milestones that are crucial for the next financing round. 
So overall, COVID-19 has brought new challenges, but also new opportunities, and it is time that society gets back to understand how valuable the ability to live a healthy life is and that working medicines are far more than a luxury good. 

What have been the key moments since your launch?
Obviously, there have been many important moments since we started BioVersys. Growing our team with the amazing people that we have on board is definitely one of the most rewarding. A true key moment is actually right now, as we take two programs in parallel into first-in-human studies. For any biotech, the switch from preclinical research and development to full clinical development is a major step and a lasting change to the organization. For BioVersys doing it in parallel with two different programs adds to the excitement.

What advice do you have for entrepreneurs who are just starting their journeys? 
Believe and focus on your vision and mission. Get ready for an exciting journey. Stay open-minded and listen to advice. Hire the best talents. Stay persistent: We need the many new innovative companies in Switzerland to prosper.