Participated · Series D · Oct 2013

Versartis is a Redwood City, California-based endocrine-focused biopharmaceutical company led by CEO Jeffery L. Cleland, PhD. The company develops VRS-317, a novel long-acting form of recombinant human growth hormone for the treatment of growth hormone deficiency (GHD). It completed a $55M Series E financing that brought total capital raised to $132M. Investors in the round included existing backers Sofinnova Ventures, Aisling Capital, New Leaf Venture Partners and Advent Life Sciences alongside five undisclosed new life-science investors. Versartis intends to use the funds to prepare for an international Phase 3 pediatric GHD trial of VRS-317. Previous financings noted in the article include a $25M Series C, a $20M Series D and a $21M Series B. Versartis is developing VRS-317, a once-monthly long-acting recombinant human growth hormone, from its Redwood City, California base. VRS-317's extended half-life derives from XTEN, technology licensed from Amunix that uses natural amino acids to extend protein drug half-life; the company says this approach is cheaper and more effective than polyethylene glycol. The drug impressed in a Phase I study in adults with growth hormone deficiency and is currently in a 30-site Phase IIa trial in pre-pubescent children measuring growth at three and six months. Management says the recent financing will fund completion of mid-stage work and position the company to begin a Phase III study next year. Versartis has raised more than $65 million since its 2008 founding, including a $21 million Series B in early 2011 and $45 million in venture capital this year to date. The company presents itself as a leader in long-acting growth hormone therapy. Versartis is developing novel therapeutic proteins for endocrine disorders from its base in Redwood City, CA. Its lead product, VRS-317, is a proprietary once-monthly form of recombinant human growth hormone (rhGH). The company is evaluating VRS-317 for pediatric growth hormone deficiency (GHD) in a clinical trial being conducted at approximately 30 sites in the United States. Versartis develops proteins using its XTEN half-life extension technology, a hydrophilic amino acid sequence expressed as a fusion with an active peptide or protein. The company plans to use new capital to support clinical trials of VRS-317. Jeffrey L. Cleland, PhD, serves as Chief Executive Officer. Versartis is developing novel therapeutics for endocrine disorders using Amunix’s XTEN half-life extension technology, expressed as fusion proteins with therapeutic peptides or proteins. Its lead product, VRS-317, is a once-monthly form of recombinant human growth hormone being developed for adult and pediatric growth hormone deficiency (GHD). The company completed a $21M Series B to fund clinical trials of VRS-317. Versartis says XTEN-enabled compounds are expected to improve efficacy and patient compliance, reduce side effects, prolong half-life (up to monthly dosing), lower production costs and enhance stability. The company expanded its board to five members, with representatives from New Leaf Venture Partners, Index Ventures, Advent Venture Partners and Amunix joining alongside Versartis’s CEO. Versartis is a pharmaceutical company formed as a 50/50 joint venture between Index Ventures and Amunix to develop treatments for diabetes and metabolic disease. Amunix provided the preliminary research for three candidate drugs, and Versartis is responsible for their development. The team says advancing a single drug through Phase I could position the company for acquisition, a process they estimate could take less than 18 months. Index Ventures provided $11 million in first-round funding and has the option to invest an additional $5 million if more time is needed. Versartis’s financial runway and near-term strategy are therefore tightly linked to Index’s staged funding commitment and the progress of its lead programs.