<div><strong>By CH Unnikrishnan</strong></div><div> </div><div>Drug discovery and development company NovaLead Pharma is in talks with a bunch of private equity funds including its existing investors to raise another round of funding to the tune of at least $35 million (Rs 210 crore) by the next quarter, mainly to fund the human trials of its novel diabetic foot ulcer drug Galnobax.</div><div> </div><div>The Pune-based drug researcher had earlier received funding from a couple of private equity companies including Tata Capital Healthcare Fund and Boxmoor, which remained invested in the company. One of its earlier investors Kotak Mahindra Private Equity had a successful exit a few years ago. </div><div> </div><div>“The new round of PE investment is one of our large tranches of funding, which is likely to be closed by March next year,” said Supreet Deshpande, managing director, NovaLead, in an interview with <em>BW Businessworld</em> on Tuesday (03 November).</div><div> </div><div>The company had on Tuesday said its new research lead, which is a novel indication of an existing drug for the treatment of diabetic ulcer, has successfully completed preclinical studies. The company will be further developing this drug through registration trial preferably along with a partner and will launch the drug in 2018.</div><div> </div><div>“A potential breakthrough in the treatment of diabetic foot ulcers (DFU), a frequent complication of uncontrolled diabetes over a period of time, has been successfully proved with the conclusion of the global Phase I and II clinical trial of the company’s repositioned investigational drug—Galnobax,” the company said.<br> </div><div>This novel drug has successfully met both primary and secondary end points for efficacy and safety in the pre-clinical studies and it will be moving to the human trials shortly in several countries including the Us and India.</div><div> </div><div>“Galnobax has demonstrated significant benefit over placebo in terms of ability to close hard to heal DFUs in much shorter time, making it potentially the first small molecule drug for DFU,” the company said on Tuesday.</div><div> </div><div>This innovation is significant since Galnobax is a generic drug originally indicated for a cardiac condition, repositioned by NovaLead for DFU in a gel form for topical use. It had also been recognised as the best innovation in healthcare in 2015 by the Department of Biotechnology, government of India.</div><div> </div><div>“DFU is a global unmet medical need, with 85% of non-traumatic lower limb amputations happening due to hard to heal DFU. In spite of several therapeutic options being available, a lower limb is amputated every 20 seconds,” said Deshpande.</div><div> </div><div>By repositioning a generic drug previously used for a heart condition, NovaLead has established that the existing generic drug base can be a potential source for novel therapeutics for hard to treat diseases like DFU, he added.</div><div> </div><div>NovaLead is also working on two other potential innovative drugs for the treatment of psoriasis and certain cancers at present. </div><div> </div><div>According to Dr P.K. S Sarma, head technical - Discovery and Product Development, Biotechnology Industry Research Assistance Council, NovaLead’s latest innovation is very noteworthy because diabetic foot ulcers is a major unmet medical need in our country.</div><div> </div><div>The business model of NovaLead is to out-license its discoveries or co-develop them with credible partners further after receiving human proof of concept in Phase I or II clinical studies. The company is also in talks with potential partners, including some large Indian drug makers, to co-develop and commercialize the DFU drug, said Deshpande. </div>
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