22 March 2016 - - UK-based GI-focused specialty pharma company Atlantic Healthcare plc has raised USD 24m via an oversubscribed equity financing round, the company said.

This round involved the founders of Salix Pharmaceuticals, Inc.; Fullbrook Thorpe Investments LLP (the family investment arm of Andy Leaver, founder of Clinigen Group plc); LDC (the private equity division of Lloyds Banking Group plc); and existing investors.

In addition, Dr Lorin K Johnson has been appointed to the board of directors and has joined Atlantic Healthcare as a member of the Leadership team as chief scientific advisor, with immediate effect.

Johnson was previously the scientific founder of Salix Pharmaceuticals, Inc. (NASDAQ: SLXP) until its USD 15.8bn acquisition in April 2015 by Valeant Pharmaceuticals International, Inc.

Prior to Salix, Johnson was chief scientist at California biotechnology, Inc, and held academic positions at Stanford University School of Medicine and the University of California, San Francisco.

The investment will fund the recently announced pivotal Phase 3 trial for alicaforsen enema, Atlantic Healthcare's wholly-owned product to treat Inflammatory Bowel Disease pouchitis, as well as the regulatory filings for approval with the US FDA, EMA, and Health Canada.

In February 2016, Atlantic Healthcare commenced the recruitment of 138 patients at 40 trial centres across the United States, Canada, Europe and Israel. Results are expected to be reported in H2 2017.

There are currently no approved drugs for pouchitis and this trial will be the largest ever conducted for this indication. The product is also ready to commence Phase 3 for acute ulcerative colitis.

Atlantic Healthcare has worldwide exclusive rights to alicaforsen, which has been licensed from Ionis Pharmaceuticals, Inc. (NASDAQ: IONS) (formerly Isis Pharmaceuticals, Inc.) and has regulatory and patent exclusivity until circa 2030.

Alicaforsen is generating early revenues in Europe through Named Patient Supply protocols.

This has provided further evidence of efficacy and safety in the pouchitis indication. Alicaforsen has FDA fast track designation, and FDA and EMA orphan drug designation in pouchitis.

Atlantic Healthcare is a specialty pharmaceutical company focussed on diseases of the gastrointestinal tract and Inflammatory Bowel Disease.

The company's lead product is alicaforsen enema, in Phase 3 development for pouchitis, and in preparation for Phase 3 clinical development for Ulcerative Colitis.

Alicaforsen is also generating early repeat revenues in Europe through Named Patient Supply protocols. The company has FDA and EMA orphan designation, and an FDA letter of fast-track in pouchitis.

In addition, the company is targeting the use of alicaforsen for the treatment of other inflammatory bowel diseases including left-sided (distal) colitis.

LDC is the private equity division of Lloyds Banking Group plc, one of the UK's national banks, and is authorised and regulated by the Financial Conduct Authority.

Fullbrook Thorpe Investments LLP is a family investment fund established in April 2015.
Investing worldwide in a broad spectrum of companies, FTI has grown a portfolio of investments in a short time, the majority of which are in the pharmaceutical industry.

The fund was founded by Andy Leaver (chairman), Andrew Borkowski and Andy's son Tom Leaver. Andy Leaver is an entrepreneur who has built a reputation in the pharmaceutical industry for developing and selling businesses. Andy's recent success was the floatation of Clinigen Group plc, on the AIM market of the London Stock Exchange.