NanoBio raises $12 million to fund further clinical studies

ANN ARBOR, Michigan — Michigan-based NanoBio Corp. said today that it raised $12 million, which it will use to complete Phase 1 studies on a topical treatment for acne, an inhalable mist for cystic fibrosis and an influenza vaccine delivered through the nose.

According to SEC filings, NanoBio raised the series B funding largely in the fall through previous investor Perseus LLC as well as angel investors. In its release, NanoBio said it has raised $80 million so far to develop its NanoStat technology, which delivers medications through the skin or nasal passages.

NanoBio’s most promising products include treatments for herpes labyalis (cold sores), nail fungus, acne, cystic fibrosis and a series of intranasal vaccines.

John Coffey, NanoBio’s vice president for business development, said the company’s herpes labyalis treatment has the potential to be an over-the-counter treatment that is more effective than most prescription medications.

The company also announced in January that a study with the University of Michigan showed its topical cystic fibrosis treatment worked against bacteria that had been resistant to more traditional front-line oral and intravenous drug treatments.

“Based upon the strength of our recent data and our future development plans, there was significant interest from investors with respect to participating in this financing despite the challenging economic conditions,” Dr. James R. Baker Jr., NanoBio’s founder and chairman, stated in the release.