Southampton’s Karus seeks £4M for cancer and anti-inflammatory drug trials

Karus Therapeutics Ltd., a spinout of the University of Southampton, is seeking up to £4 million to conduct two human trials of its new drug candidates for the treatment of cancer and inflammatory diseases.

Karus CEO Simon Kerry, presenting 8 March at the “Meet the Spinouts” conference organized by Library House and sponsored by Science|Business, said the company is developing a class of drugs called histone deacetylase, or HDAC, inhibitors. These compounds are in development by other companies, as well – but Karus believes that its specific HDACs, called synthetic depsipeptides, have greater potency, can bypass normal drug-resistance mechanisms, and can be more effective.

The company is planning human clinical trials of its drugs in 18 months for cancer and psoriasis therapies, and the current funding round is intended to support that effort.  Kerry said the company is currently collaborating on the work with some drug companies, and it aims for investors in the company to be able to exit in late 2009 at the earliest through a public offering or trade sale.

One risk factor, Kerry said, is that the two-year-old company needs to demonstrate its claim to be “the best of the best” in HDAC therapies. It is arranging for testing by contract research organizations over the course of the next year – a complex process for a small company to manage. Karus has five employees.

Current investors include IP Group, which in July 2005 invested £475,000 for a 38.2 percent stake. Other current investors include the university’s seed fund, Cancer Research Technology Ltd., South Asset Management, and five individuals.