Venture firms back NZ-based biotech company

New Zealand-based biotechnology company CoDa Therapeutics has raised $20 million of venture capital funding. It is the latest example of increased venture appetite for biotech companies in the region.

CoDa Therapeutics, a New Zealand biotech company, has completed its initial venture capital financing round, raising a total of $20 million (€15.2 million) from US-based Domain Associates and Australia-based GBS Ventures.

The company received an initial investment of $10 million (€7.6 million) in October, while negotiations on an additional $10 million investment were concluded last month.

It is the second significant venture deal in the sector this month. Last week Proacta, another New Zealand-based biotech company, raised $35 million (€26.6 million) in a second financing round.

It is expected that CoDa’s tissue repair drug, Nexagon, will be clinically tested in December. Meetings with the US Food and Drug Administration begin next month.

Dr Colin Green and Dr David Becker founded CoDa Therapeutics, which operates from the US, New Zealand and the UK.