Oklahoma investment in Selexys pays off in blockbuster deal
Innovations and Entrepreneurs columnist Rex Smitherman writes that the Selexys Pharmaceuticals deal is the culmination of 15 years of cooperation among researchers, entrepreneurs and investors.
Last week, Oklahoma entrepreneurship scored a blockbuster win when Selexys Pharmaceuticals announced a $23 million investment led by MPM Capital.
DID YOU KNOW?
Sickle cell disease affects an estimated 2 million people worldwide. For every person with sickle cell, there are three siblings who don't manifest symptoms but carry the trait, which can be passed on genetically. About 2.5 million people in American carry the trait.
The investment will fund Selexys' Phase II clinical study for SelG1, a drug for patients with sickle cell disease. It also will be used to advance a second drug to treat Crohn's disease and cancer.
Further, Selexys has provided Novartis Pharmaceuticals with exclusive option to acquire Selexys and SelG1 after successful completion of the Phase II study, an agreement that could reach up to $665 million.
“The general public tends to think that these kinds of discoveries and deals are limited to the East and West Coasts,” said David Thomison, i2E vice president of investments. “But Selexys is an Oklahoma accomplishment all the way, beginning when the Oklahoma Medical Research Foundation and the University of Oklahoma cooperated with the Oklahoma private sector to license technology discovered by Dr. Rodger McEver.”
The deal marks the culmination of more than 15 years of world-class scientific research, remarkable entrepreneurial leadership, and support and participation from Oklahoma's funding sources and angel investors who believed their investment in Selexys could lead to something big.
Drug discovery and development consume risk capital. Startups scramble to gather funding to move their products through preclinical and Phase I trials to reach Phase II human trials, which is when venture capitalists and potential acquirers typically become interested.
“This is a success story of what can be accomplished in Oklahoma life sciences with a very focused effort from many sources,” said William D. Paiva, Ph.D., manager of the Oklahoma Life Science Fund II.