Canadian drug maker raises C$45m Series C round

Japanese pharmaceutical company Mitsubishi Tanabe Pharma has led a funding round for Cytochroma that included contributions from Canadian pension La Caisse de dépôt et placement du Québec, Canadian government-backed BDC Capital and four retail venture capital funds.

Cytochroma, an Ontario-based drug company focused on Vitamin D deficiency and related disorders including chronic kidney disease, has raised C$45 million ($44 million; €28 million) in venture capital funding for its Series C round.

Japanese drug maker Mitsubishi Tanabe Pharma, a new investor, led the round.

It was joined by existing backers that represent a range of investor types: Canadian pension La Caisse de dépôt et placement du Québec; Novo AS, the venture arm of Danish pharmaceutical company Novo Nordisk; and Canadian government backed BDC Capital.

Return investors also included publicly traded Canadian retail venture capital funds VenGrowth Advanced Life Sciences Fund, VentureLink, GrowthWorks and the Canadian Medical Discoveries Fund.

The funding will be used to advance Cytochroma's three main products into mid- and late-stage clinical trials, the company said.

It added that it expects the North American market for products like those it hopes to advance will grow to more than $1.4 billion annually by 2013.