Napo Pharmaceuticals, a South San Francisco-based drug company, just closed a round of initial funding from Asset Management. The undisclosed sum is earmarked for its subsidiary Crofelemer Access Program Global, which makes an anti-diarrheal compound for HIV and AIDS patients. It is currently in phase-three clinical trials.
As part of the deal, Asset Management will receive royalties on the sale of the drug in North America, Europe and Japan. In December, Salix Pharmaceuticals acquired limited rights to the compound, allowing the company to commercialize it for HIV patients as well as for people suffering from pediatric diarrhea or acute infectious diarrhea in those same regions. Glenmark Pharmaceuticals has also licensed the drug for sale in 140 countries outside of North America, the European Union and Japan, according to VentureWire.
The compound, also called crofelemer, has also proved effective for the treatment of cholera and irritable bowel syndrome in some tests.