VC goes for a herbal remedy

Author:
Publish date:

Phytomedics raised $9mm in Series B funding from VC firms Burrill & Co. and New Zealand-based Inventages, signaling a new wave of emerging botanical drug companies (new term for herb peddlers) that are now FDA friendly. Phytomedics makes an arthritis drug from Chinese Thunder God Vine (you read that correctly) extract. The drug was FDA approved to skip costly preclinical tests and move directly into Phase I trials, which in the case of botanical drug companies, involve feeding mogwais after midnight.
The rheumatoid arthritis market is 7 million patients strong, and existing drugs and current treatments have burdensome side effects (increased risk of death?). Fortunately, botanical drugs don't really do anything! Botanical drug companies face consistency problems too, as the chemical composition of plants varies with growing conditions.
Phytomedics has raised $22mm since it was founded in 1997.
VCs Seek Health in Herbal Cures [Red Herring]

Related