Swedish biotech company Modus Therapeutics AB revealed on Friday the receipt of SEK140m from a financing led by new investor HealthCap, a European venture capital firm.

Under the terms of the financing, HealthCap will invest SEK60m in a series A preferred financing. At the same time, existing shareholders will convert outstanding convertible notes into shares. The new equity investment together with the conversion amounts to over SEK140m.

Additionally, Modus Therapeutics will use the funds to continue the clinical development of sevuparin for sickle cell disease, a painful, inherited blood disorder affecting millions of people around the globe and the most common inherited blood disorder in the US affecting between 90,000-100,000 subjects.

Sevuparin, a lead candidate drug, is a proprietary polysaccharide drug with anti-adhesive, anti-aggregate and anti-inflammatory effects due to its multimodal mechanism of action. It has the potential to restore blood flow and prevent further microvascular obstructions in SCD subjects, concluded the company.

(EUR1=SEK10.3466)