Tranzyme Pharma, a developer of novel mechanism based therapeutics for the treatment of gastrointestinal (GI) disorders, has raised $32 million. H.I.G. Ventures, Thomas, McNerney & Partners and Quaker BioVentures led the financing. Additional participants in the financing included existing investors, Business Development Bank of Canada (BDC Venture Capital), Desjardins Venture Capital, Pacific Rim Ventures and The Solidarity Fund (FTQ).

As part of this financing, $6 million in previously issued notes have been converted into equity shares.

“The new round of funding will be used for accelerating the clinical development of Tranzyme’s lead compounds and focus on additional discovery and pre-clinical development efforts to expand our pipeline,” Vipin K. Garg, President and Chief Executive Officer of Tranzyme Pharma, adding, “We are very pleased that Tranzyme’s progress has allowed us to attract an outstanding group of investors,” says Dr. Vipin Garg.

Tranzyme’s lead product TZP-101 will enter clinical trials before the end of 2005 for the treatment of post-operative ileus, a term which refers to the medical condition of intestine blockage. The company has also developed a novel small molecule compound in its pre-clinical pipeline for treatment of disorders, such as diabetic gastroparesis, irritable bowel syndrome and functional dyspepsia. Unlike most current therapeutic approaches to GI disorders that address only symptomatic relief, Tranzyme
Pharma’s “mechanism-based” therapies directly target the site of pathophysiological disturbance and correct the underlying condition.

Headquartered in Research Triangle Park, N.C., Tranzyme has office in Sherbrooke, Quebec, Canada. Under Dr. Garg, who has been with the company since 2000, Tranzyme recently merged with a Canadian biotechnology company NEOKIMIA Inc. resulting in the formation of Tranzyme Pharma.