RusnanoMedInvest and Domain Associates invest $40M in CoDa Therapeutics

American venture capital fund Domain Associates with a group of co-investors and RusnanoMedInvest Company (RMI, a project company of RUSNANO) invest $40 M in CoDa Therapeutics, Inc. This is the first transaction under an investment agreement between RUSNANO and Domain Associates that was signed in March this year.

According to Rusnano’s press release, CoDa Therapeutics, Inc. is a portfolio company of Domain Associates which develops innovative drug Nexagon for the treatment of chronic ulcerative diseases including diabetic foot ulcers. It has shown high efficiency in a number of clinical trials. The action of the drug is based on the principle of gap junction modulation - a unique molecular mechanism that prevents the development of inflammatory processes by regulating cell-cell interactions in tissues.

RUSNANO and Domain Associates signed a cooperation agreement in March 2012 on joint investment in advanced medical technology in order to transfer it to Russia and further production of innovative products. The total budget of the investment project is $760M. To implement the agreement, RUSNANO founded RMI Company, and Domain Associates founded Domain Russia Investments (DRI). Tim Drive Company is the manager of the project.

Intellectual property rights to innovative drug Nexagon and its local production will be transferred to Russia according to the agreement. This will help to provide this population of Russia and CIS countries with a highly effective drug at short notice.

The acquisition of CoDa Therapeutics, Inc. shares is the first deal within the framework of a strategic partnership with Domain Associates, - RUSNANO Managing Director Olga Shpichko said. - We are confident that our investment in innovative drug Nexagon will help to advance the treatment of a number of complex diseases in Russia that is a real social problem today.

We are pleased that the first object of strategic investment under the joint project with RUSNANO is CoDa Therapeutics Company and Nexagon drug. There is no similar product In Russia - neither on the market or at the stage of development - Tatiana Saribekyan, the CEO of Domain Russia Investments said. - This deal will not only market this unique product, but will also promote technology transfer to Russia and the opening of a pharmaceutical company, which will produce the latest drugs in accordance with GMP Standards.

This joint investment at the final stages of Nexagon drug development is extremely helpful - Bradford J. Daft, the president and CEO of CoDa Therapeutics said. - Attracted capital will allow us to conduct the closing stages of clinical trials, as well as to test the possibility of drug use in the treatment of other diseases. The License Agreement, as well as the research in the U.S. and Russia will contribute to the releasing of the Nexagon drug to the Russian and world markets.