TxCell raises €10.5m to finance PI-IIA clinical trials

TxCell, from Nice, France, an anti-inflammatory immunotherapy specialist, has raised €10.5m in a first round of financing.

Five major investors - Auriga Partners, AXA Private Equity, BioAm, CDC and SPEF Venture - took part in the deal. They joined existing shareholders Inserm-Transfert and the company's founders and senior management.

The new money will finance Phase I-IIA clinical trials with the objective of demonstrating the clinical efficacy of a particular type of lymphocyte cell, Tr1 (a T-regulatory cell), when used in the treatment of serious chronic diseases caused by disorders of the immune system.

TxCell, founded in 2001 in Nice by Herve Groux and Francoise Cottrez, has built its technology around the role of the Tr1 T-regulatory cells in maintaining the balance of the immune system. Their role was first demonstrated in 1997 by Herve Groux¹

Chronic inflammation of the immune system occurs due to an imbalance between the effector cells and the regulatory cells. The role of the latter is to re-establish the balance of the immune system by stopping inflammatory reaction through the local secretion of anti-inflammatory cytokines.

The technology developed by TxCell is based upon the Tr1 regulatory cells. It represents a breakthrough compared with currently available therapies, and offers a curative rather than a palliative or symptomatic solution, as well as individualized therapy. Target diseases for TxCell are chronic inflammation of the immune system caused by Crohn's disease, multiple sclerosis, psoriasis, asthma or rheumatoid polyarthritis.

'TxCell has obtained spectacular results in animal studies showing a 100% rate of effectiveness and a total absence of relapse whatever the model used,' said Philippe Ballero, president of TxCell. 'This round of financing will enable us to manufacture Tr1 cells with the objective of entering Phase I-IIA towards the end of 2005.'