Alphyn Biologics announced the closing of its USD 25 million, twice-oversubscribed Series B financing. Proceeds will fund the phase II (b) global clinical trial of Alphyn's lead drug candidate, Zabalafin Hydrogel, for Atopic Dermatitis (AD), initiate a second phase II clinical programme for the treatment of the Molluscum Contagiosum Virus (MCV) and expand the company's supply of drug raw material.

The round was led by QCA Investment Group and included existing investors Angel Physicians Fund, Serial Stage Venture Partners, a corporate fund and several new investors.

"We are incredibly grateful for the support of our current and new investors. This financing reflects their confidence in our multi-target therapeutic drug platform and our unique and highly differentiated drug candidates for atopic dermatitis and the Molluscum Contagiosum Virus. We are well-positioned to rapidly advance Zabalafin Hydrogel towards our next key milestones - two pivotal phase III trials - while broadening our pipeline of breakthrough therapies for skin diseases," said Neal Koller, CEO, Alphyn.

Alphyn is developing Zabalafin Hydrogel as the first therapeutic to directly treat the distinct but inter-connected drivers of AD – inflammation, itch, bacteria and dry skin – and to directly treat the distinct, but inter-connected drivers of MCV – the virus itself, itch, inflammation and, in many sufferers, dermatitis (molluscum rash) and the added bacterial infection with its associated pain.

Drugs in the market, and being studied in clinical trials for both diseases directly target only one of the disease drivers, leaving the body to later fight the others. Zabalafin Hydrogel, with its expected strong efficacy and patient tolerability profile, has the potential for sustained management and long-term control of these diseases. For MCV, it has the potential to be the first direct anti-viral drug that is safe, gentle and effective, and, therefore, the first real treatment option for the millions of children afflicted with this disease. Current marketed therapeutics destroy the skin and are blistering and painful for patients.

"Alphyn is breaking new ground with a first-in-class, natural topical therapeutic that is expected to directly address all of AD's problems and have the potential for long-term, continuous use. With an experienced leadership team and their continued strong execution, Alphyn is poised to meet two tremendous market needs and bring patients a highly innovative new therapy for AD and MCV," said Tony Shipley, Chairman, Alphyn's lead investor, QCA Investment Group.