Venture capital with a 'K'

San Diego Business Journal, Dec 4, 2006 by Katie Weeks

Venture Capital With A 'K': Kalypsys Inc., whose lead drug candidate aims to treat metabolic disorders, including obesity, has raised $100 million from venture capitalists.

The San Diego biotechnology firm received $89 million of the total from Tavistock Life Sciences. Other contributors include the New York City-based Sprout Group, San Francisco-based CMEA Ventures and the San Jose-based KT Venture Group.

"This is further validation of our early successes in changing the way drugs are discovered and developed," Chief Executive Officer John McKearn said in a press release. "The financing will support our further progression of multiple programs."

Since February 2002, Kalypsys has raised $172 million in private equity, according to the company.

Kalypsys' lead candidate, KD3010, is a small molecule Peroxisome Poliferator-Activator Receptor Delta agonist for the treatment of metabolic disorders, including, potentially, obesity, diabetes and dyslipidemia.

Kalypsys recently completed a phase 1a single- and multiple-dose escalation study that evaluated the safety, tolerability and pharmacokinetics of the drug versus placebo in healthy volunteers. A 28-day safety study will follow in early 2007, testing the drug in obese volunteers.

In September, the company said it intended to file an investigational new drug application by the end of this year for a drug candidate that could treat inflammatory disease and pain.

The company has 10 drug candidates, including potential compounds for treating cancer.