Rhythm raises $25 million to fund diabetes and obesity drugs development

Boston, USA-based biotech firm Rhythm Pharmaceuticals says it has raised $25 million in a Series B financing round. All existing investors participated in the round - MPM Capital (MPM), New Enterprise Associates (NEA), and Third Rock Ventures (TRV) - as well as a new investor, French drugmaker Ipsen (Euronext: IPN). The Series B financing brings the total capital raised by Rhythm to $65 million.

Rhythm will use the proceeds to continue advancing its small-peptide therapeutics for metabolic diseases through Phase II clinical trials. RM-131 is a ghrelin agonist currently in a Phase II testing for the treatment of diabetic gastroparesis. RM-493, an agonist of the melanocortin 4 receptor (MC4R), is in Phase I clinical trials for the treatment of obesity and diabetes.

“We have made great progress since we started both development programs in 2010, and this could only have been achieved with a strong and dedicated investor syndicate,” said Bart Henderson, founder and president of Rhythm, noting that “these programs have great potential for addressing major unmet needs in diabetes, obesity, and gastrointestinal functional disorders, and this financing supports a broad and thorough Phase II development program for both drugs.”