Meritage Pharma Inc secures 22 5 million in venture capital financing

Meritage Pharma Inc. , a newly formed specialty pharmaceutical company, announced on June 16, 2008 that they have secured a $22.5 million financing. The main investors include venture capital companies: Domain Associates , Latterell Venture Partners and The Vertical Group .

Meritage is a privately held company operating in the pharmaceutical market. The company develops several prescription products. They are currently focused on the development of medicine for the treatment of gastrointestinal inflammation.

Meritage acquired the drug from Verus Pharmaceuticals, Inc., another specialty pharmaceutical company, operating in the pediatric market. Meritage acquired the rights to the formulation of an existing molecule that was derived for the treatment of allergic inflammation condition of the gastrointestinal tract. Following the agreement, Verus will receive an initial payment as well as retain a minority interest in Meritage. Also Meritage's management team was only recently formed from selected members of the Verus management team.

Dr. Elaine M. Phillips, President and Chief Executive Officer of Meritage Pharma, was pleased with their current development: "Meritage Pharma is proud to acquire this exciting development program as our initial product candidate and is eager to leverage the prior efforts of Verus to address an emerging condition."

The significant financing they have received means that their product must have some serious potential. There is currently no drug that would completely heal inflammation of the gastrointestinal tract. Maybe the company will manage to develop one. We will see. The company has not ruled out the possibility of pursuing other pharmaceutical product opportunities. However this is not likely to happen very soon.

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Meritage Pharma Inc secures 22 5 million in venture capital financing