RESEARCH TRIANGLE PARK, N.C.,
Nov. 5, 2020 /PRNewswire/
-- Pappas Capital, a leading venture capital firm focused on
advancing life sciences, today announced that its portfolio
company, VelosBio Inc. ("VelosBio" or the "Company"), has entered
into a definitive agreement to be acquired by a subsidiary of Merck
(NYSE: MRK) for $2.75 billion in
cash, subject to customary adjustments. The exit is amongst Pappas
Capital's most successful in its 25-plus-year history.
VelosBio is a clinical-stage biopharmaceutical company committed
to developing first-in-class cancer therapies targeting receptor
tyrosine kinase-like orphan receptor 1 (ROR1). Pappas Capital first
invested in VelosBio in 2018 as part of the Company's $58 million Series A financing. Encouraged by the
strong potential of VelosBio's novel therapies for
difficult-to-treat cancers, Pappas Capital subsequently
participated in the Company's $137
million Series B financing in July
2020.
Pappas Managing Partner Kyle Rasbach, Ph.D., PharmD. has
served as a VelosBio Board Observer, providing hands-on support and
guidance to the Company's leadership team and Board of Directors on
the development of VelosBio's investigational candidate (VLS-101).
VLS-101 is an antibody-drug conjugate (ADC) targeting ROR1 that is
currently being evaluated in a Phase 1 and a Phase 2 clinical trial
for the treatment of patients with hematologic malignancies and
solid tumors, respectively.
Dr. Rasbach commented, "At Pappas, our focus has long been on
identifying and executing on investment opportunities in innovative
life science companies and partnering with exceptional teams to
bring these technologies to market. VelosBio serves as an ideal
example of our strategy at work, and we are thrilled to watch the
Company embark on its next phase of growth as part of Merck."
"This acquisition is a transformative event that will propel the
advancement of VLS-101 as a potential new cancer treatment,
and we are humbled to have worked closely with the VelosBio team to
achieve this milestone. We look forward to continuing to build upon
our investment track record by sourcing new opportunities that seek
to not only provide superior results to our investors, but just as
importantly, improve the lives of patients."
VelosBio is Pappas Ventures V's second exit this year, following
the acquisition of Curzion Pharmaceuticals, Inc., a company
co-founded by Pappas Capital, by Horizon Therapeutics plc in
April 2020.
About Pappas Capital
Founded in 1994, Pappas Capital invests exclusively in innovative
life sciences companies with a focus on biotechnology,
biopharmaceuticals, drug delivery, medical devices, and related
ventures, across the United States
and Canada. Pappas Capital has
raised more than $540 million and has
guided the launch or development of more than 85 companies. In
addition to its Pappas Ventures funds, the firm manages customized
investment vehicles for third parties through its Specialized Fund
Management Group, and works with academic institutions in
developing innovation through its Translational Medicine Research
Initiative. For more information, please visit:
www.pappas-capital.com.
Investor Contact:
Lisa Dreyer
919-998-3308
ldreyer@pappas-capital.com
Media Contact:
Amanda Klein/Alex Jeffrey
Gasthalter & Co.
212-257-4170
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SOURCE Pappas Capital