BOSTON– Catabasis Pharmaceuticals, Inc. (NASDAQ:CATB), a biopharmaceutical company, today announced that it has acquired Quellis Biosciences Inc. (“Quellis”), a privately-held emerging biopharmaceutical company focused on discovering best-in-class new molecules to treat serious rare diseases. Concurrent with the acquisition of Quellis, Catabasis entered into a definitive agreement for the sale of Series X convertible preferred stock (the “Series X preferred stock”) in a private placement to a group of institutional accredited investors led by Perceptive Advisors, with participation from Fairmount Funds Management LLC, RA Capital Management, Cormorant Asset Management, Venrock Healthcare Capital Partners, Logos Capital, Boxer Capital, Acorn Bioventures, Commodore Capital, Surveyor Capital (a Citadel company), Acuta Capital Partners, Sphera Healthcare, and Serrado Capital LLC. The private placement is expected to result in gross proceeds to Catabasis of approximately $110 million before deducting placement agent and other offering expenses. Catabasis expects to use the proceeds from the private placement primarily to enable the completion of IND-enabling studies, Phase 1a, and Phase 1b/2 clinical trials for the lead program QLS-215 in hereditary angioedema (HAE), a rare, debilitating and potentially life-threatening disease.
“Catabasis has worked diligently with external advisors to explore and evaluate a range of strategic options, and the Board and management team believe that this transaction represents an opportunity to create substantial value for Catabasis’ stockholders,” said Kenneth Bate, Chair of the Catabasis Board of Directors. “Our mission has always been to bring life-changing therapies to patients and families affected by rare diseases. We look forward to progressing QLS-215, a differentiated and potential best-in-class new therapy for patients affected by HAE.”
“We are thrilled that the Catabasis Board and management team selected Quellis as the best acquisition opportunity based on our lead asset, QLS-215, and the vision to produce a leading HAE and rare disease company,” said Chris Garabedian, Chair of the Quellis Board of Directors, CEO of Xontogeny and Portfolio Manager, Perceptive Xontogeny Ventures (a Perceptive Advisors fund). “We are further pleased with the progress we made with Quellis since the formation of the company in 2017.”
Quellis was formed at Xontogeny, a life sciences accelerator, with the founders of Quellis and a seed investment in 2017. The subsequent Series A financing was led by the Perceptive Xontogeny Ventures (PXV) Fund in 2018 with Fairmount Funds. The PXV Fund is participating in the private placement as part of the Perceptive Advisors investment.
The vision for the lead program, QLS-215, is to develop the best-in-class monoclonal antibody inhibitor of plasma kallikrein for HAE with infrequent dosing and sustained blood levels. QLS-215 is a humanized monoclonal antibody targeting plasma kallikrein that has demonstrated potent inhibition of plasma kallikrein as well as extended plasma half-life in non-human primates. Catabasis expects to file an Investigational New Drug application for QLS-215 in the first half of 2022 and plans to initiate a Phase 1 clinical trial with initial results anticipated by the end of 2022. Subsequently, Catabasis expects to initiate a Phase 1b/2 trial in patients affected by HAE in 2023 with initial results anticipated by the end of 2023.
