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Scout Bio Announces $20 Million Financing to Advance Pipeline of One-time Therapies for Companion Animals

Financing to drive leadership in AAV vector-delivered one-time
therapies for major chronic pet health conditions

Company supported by leading life sciences investors and an R&D
collaboration with the Gene Therapy Program in the Perelman School of
Medicine at the University of Pennsylvania

Recent executive appointments provide global expertise in animal
biologics clinical R&D, regulatory affairs, AAV manufacturing, and gene
therapy research

PHILADELPHIA–(BUSINESS WIRE)–Scout Bio, a biotechnology company focused on revolutionizing pet
medicine by delivering a pipeline of one-time therapeutics for major
chronic pet health conditions, today announced a $20 million Series B
financing to advance its pipeline and expand clinical and other
operations. The financing was co-led by Digitalis Ventures’ Companion
Fund and RiverVest Venture Partners, and was joined by new investor
GreenSpring Associates as well as existing investors Frazier Healthcare
Partners, Adage Capital Management and Correlation Ventures. In
conjunction with the financing, Nancy Hong of RiverVest Ventures, Cindy
Cole of Digitalis Ventures, and Aditya Kohli of Frazier Healthcare
Partners will join the board alongside existing directors Mark
Heffernan, Tachi Yamada, and Patrick Heron.

Scout was founded to harness the same genetic revolution transforming
human medicine to deliver the future of veterinary medicine. Scout is
advancing a number of programs across chronic kidney disease, chronic
pain and the inflammatory skin condition atopic dermatitis. The
company’s approach is to deliver long-term expression of therapeutic
proteins in pet patients using adeno-associated viral (AAV) vector
technology, administered through a single intramuscular injection.

Scout Bio has entered into an AAV animal health research and development
collaboration with the Gene Therapy Program (GTP) at the Perelman School
of Medicine at the University of Pennsylvania (Penn), led by Jim Wilson,
M.D., Ph.D, a Scout scientific advisor and co-founder. The GTP has been
a global leader in gene therapy research and vector discovery and
development for nearly three decades. Through a separate license
agreement between Scout and Penn, Scout is granted exclusive worldwide
rights to multiple AAV-based veterinary product candidates and
associated AAV technologies for animal health.

“Scout’s mission is to leverage advances in gene therapy to dramatically
elevate the standard of care for multiple areas of veterinary medicine
that currently rely on chronically administered medicines,” said Mark
Heffernan, Ph.D., Chief Executive Officer of Scout Bio. “Our approach is
designed to provide improved patient outcomes via therapies that have a
sustained duration of effect from a one-time dose, aligning with the
significant market need for longer-lasting pet medications that improve
compliance and convenience.”

“In the United States alone, there are 90 million dogs and 94 million
cats, underscoring the opportunity in a new generation of medicines that
dramatically improve standards of care for major chronic conditions. We
are impressed with Scout’s strategy for meeting this need and look
forward to supporting them into clinical development,” said Cindy Cole,
DVM, Ph.D., Technical Partner at Digitalis Ventures.

“Scout has assembled an executive team which unites experts in animal
biologics development with world-leading AAV research and manufacturing
capabilities, a combination uniquely suited to deliver on the promise of
the company’s technology platform for innovative veterinary medicines,”
said Nancy Hong, Ph.D., Managing Director of RiverVest Ventures.

Scout’s most advanced therapeutic candidate is designed to deliver
long-term expression of feline erythropoietin (EPO) in cats with anemia
associated with chronic kidney disease. This condition leads to a
progressive deterioration in quality-of-life, has no FDA-approved
therapy, and current standards of care have severe drawbacks. Scout has
recently demonstrated statistically significant increased red blood cell
counts (an EPO biomarker) in cats for months after a single
intramuscular injection, and has initiated a clinical pilot field study
(the stage immediately prior to pivotal studies in animal health) for
this program. A proprietary survey of 424 veterinarians indicated that
over 90% of veterinarians would use a product with Scout’s target
profile over all other treatments for feline anemia, citing life-long
efficacy as its most attractive feature.

“The GTP is looking forward to extending its long-term leadership in AAV
research and development into companion animal health to address the
compliance challenges associated with frequent administration and
provide new modalities for tackling chronic disease,” said Dr. Jim
Wilson of Penn’s GTP. “There is now a confluence between matured gene
therapy technologies and medical need in animal health, and we believe
Scout is positioned very strongly at that intersection and opportunity.”

About Scout Bio
Scout Bio is a biotechnology company focused
on revolutionizing pet medicine by delivering a pipeline of one-time
therapeutics for major chronic pet health conditions. Scout has an
exclusive research and development collaboration with the University of
Pennsylvania’s Gene Therapy Program, which has been a global leader in
gene therapy research and development for nearly three decades. Scout’s
therapeutics are designed to induce long-term expression of therapeutic
proteins in pet patients using AAV vector technology. Scout Bio is a
private company headquartered in Philadelphia, Pennsylvania. For more
information, please visit www.scoutbio.co.

Penn Financial Disclosure
Dr. Wilson is a Penn faculty
member and also a scientific collaborator, consultant and co-founder of
Scout Bio. As such, he holds an equity stake in the Company, receives
sponsored research funding from Scout Bio, and as an inventor of the
licensed technology he may receive additional financial benefits under
the license in the future. The University of Pennsylvania also holds
equity and licensing interests in Scout Bio.

About Digitalis
Digitalis is a venture capital firm that
invests in solutions to complex problems in human and animal health. The
firm partners with entrepreneurs, inventors, and scientists across all
stages of venture investing, and its investments span the full continuum
of the healthcare ecosystem. In addition to its healthcare activities,
Digitalis manages the Companion Fund, the first venture capital fund to
focus exclusively on innovations in pet care. Digitalis has offices in
New York City, Boston, San Francisco, and Los Angeles. To learn more,
please visit: www.digitalisventures.com.

About RiverVest Venture Partners
RiverVest Venture Partners
is a venture capital firm focused on identifying and shaping early stage
life science companies to create significant shareholder value. With
hands-on, high-level expertise and financial resources, RiverVest
supports entrepreneurs by helping them achieve near-term objectives that
position their companies for exit. Visit www.rivervest.com
and follow on Twitter @Rivervest.

Contacts

Tom Donovan, Ten Bridge Communications
tom@tenbridgecommunications.com
+1
857-559-3397

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