Rhythm expands Series B financing to $33 Million, adding Pfizer Ventures as an investor

Boston, USA-based biotech firm Rhythm Pharmaceuticals says it has raised an additional $8 million to complete a $33 million Series B financing. The additional $8 million comes from new investor, Pfizer Venture Investments, the venture capital arm of global drug behemoth Pfizer (NYSE: PFE), which joins existing investors MPM Capital, New Enterprise Associates, Third Rock Ventures and Ipsen, which all participated in a first closing of the Series B financing earlier this year (The Pharma Letter June 14).

Rhythm will use the proceeds to further develop its small-peptide therapeutics for metabolic diseases. RM-131 is a ghrelin agonist currently in Phase II clinical trials for diabetic gastroparesis and GI functional disorders. RM-493 is a melanocortin 4 receptor (MC4R) agonist that is completing Phase I clinical trials for the treatment of obesity and diabetes. This additional financing brings the total capital raised by Rhythm to $73 million.

“We are excited to have the support of Pfizer Ventures as we advance both metabolic programs through Phase II trials,” said Bart Henderson, co-founder and president of Rhythm, adding: “The Pfizer team has deep commercial and development experience that we intend to leverage as we expand the clinical trial program for these two important new therapeutics.”