Milestone News

Milestone Pharmaceuticals Announces $13 Million Equity Financing

MONTREAL, QC, June 13, 2011 – Milestone Pharmaceuticals Inc., a cardiovascular drug development company, announces the completion of a $13 million round of equity financing. The round is led by Pappas Ventures, the Business Development Bank of Canada (BDC), and GO Capital. Other participating investors are Fonds de solidarité FTQ (FSTQ), and the company’s previous investors, iNovia Healthcare Ventures, who played a key role during the Company’s founding and was the lead investor in the earlier rounds, and Fonds Bio-Innovation.

Funding will be used to continue development of MSP-2017 and related products, the company’s lead candidate series for episodic treatment of transient cardiovascular conditions such as paroxysmal supraventricular tachycardia (PSVT), and stable angina, amongst others.

“We are excited that this group of leading life sciences investors shares our vision for developing cardiology products for unmet medical needs in atrial arrhythmias and ischemic conditions,” said Philippe Douville, Chief Executive Officer at Milestone. “MSP-2017 will be a first-in-class medication for a target group of patients who will benefit from a “pill-in-the-pocket” to terminate acute PSVT episodes in the unmonitored setting without necessarily having to resort to the emergency room.”

“We believe that Milestone’s strategy to address PSVT is consistent with the trends toward consumer-centric health with patients being more involved in managing their medical conditions and reducing the economic burden on the healthcare system,” said Ela Borenstein, Partner, BDC Health Venture Fund, who joins the company’s board of directors.

“The Fonds de solidarité FTQ is pleased to invest in Milestone, a pre-clinical company that it has been supporting indirectly for many years. This investment has been made in association with a strong group of Canadian and US based investors that are members of the Fonds’ network. The presence of US investors confirms the high quality of the science developed in Quebec and nourishes the Fonds’ commitment to pursue the development of Quebec’s life science sector” said Janie Béïque Senior Vice-President New Economy.

In conjunction with this financing, Eric Linsley, Managing Partner of Pappas Ventures, Scott Weiner, Senior Principal at Pappas Ventures and Dominic Jaikaran, Principal at BDC Health Venture Fund, will also join Milestone’s Board of Directors. The FSTQ will name a Board representative in the coming months. Philippe Lamarre and Adeoye Olukotun will retire from Milestone’s Board.

About MSP-2017

Milestone’s lead product (MSP-2017) is a novel and potent short-acting calcium channel antagonist in preclinical development for the treatment of PSVT, a cardiac arrhythmia with an unmet need for treatment of acute episodes. The product is designed to be used by ECG-diagnosed patients to terminate acute PSVT episodes at-home in an unmonitored setting. MSP-2017 will be different than chronic drug treatment because it is short-acting with a blood half-life of less than 5 minutes, and will be used to terminate acute PSVT attacks as they arise. This should allow patients to discontinue chronic therapy thereby avoiding side effects or avoiding inconvenient and costly visits to the emergency room. MSP-2017 could also provide patients with an alternative to catheter ablation, an invasive and expensive cardiac procedure. Because of its short half-life, it is expected to have an excellent safety profile, and will be delivered for rapid systemic exposure and pharmacodynamic response.

MSP-2017 will address an unmet medical need because, currently, there are no competing short-acting products for acute PSVT in an at-home setting. Adenosine, the most widely used short-acting drug, can only be administered intravenously in a clinical setting. A short-acting product for acute PSVT that could be self-administered would give patients the option to treat episodes in the unmonitored setting and improve their quality of life.

There are approximately 600,000 ECG-diagnosed patients with PSVT in the United States and it is believed there are over 1.2 million outside the US.