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A small pharma company in Research Triangle Park is making a change at CEO as it tries to raise capital to support its clinical development plans.
Anthony DiTonno is the new chief executive of Dignify Therapeutics, a seven-person firm operating out of First Flight Venture Center. DiTonno steps into the role as the company works to raise about $20 million in a Series A funding round.
The appointment is an expansion of DiTonno’s role at the company, which he joined as its executive chairman a few years ago. Previous CEO Ed Burgard will remain with the company as its president.
DiTonno first connected with the company through the Council for Entrepreneurial Development after retiring from Tenax Therapeutics (Nasdaq: TENX) in July 2021. Burgard and his partners at Dignify come from scientific backgrounds, and DiTonno said he joined to bring his experience around building teams and securing financing.
The timing of this CEO transition coincides with CED’s Venture Connect conference, which takes place this week and gives companies the opportunity to connect with investors. The company is presenting at the event on Thursday.
Top priority for DiTonno is raising capital for a Series A round. Raising funding has been difficult for biotech and small pharma companies over the past two years, but recent IPO filings and merger and acquisition activity are encouraging signs that the situation could be improving.
The company in 2015 closed a seed round of more than $3 million. Dignify has also secured almost $20 million in non-dilutive financing through various grants with agencies like the National Institutes of Health, but the company is now looking to bring in more capital to accelerate its plans, DiTonno said.
This Series A round would support Dignify moving its two lead programs through preclinical and early human studies. After securing the capital, it could complete this work and reach early phase 2 studies within about 18 months, DiTonno said.
Both of the company’s lead programs are designed to help patients regain control of their bowel and bladder habits.
This is an area of drug development that doesn’t attract the same attention as cancer or Alzheimer’s, but it’s an important area to address, Burgard previously told Triangle Business Journal. The bladder and bowel issues that Dignify targets can lead to people needing treatment at hospitals or in nursing facilities.
To advance its clinical development plans, Dignify would also expand its seven-person team. The company needs more support in various areas, including in laboratory, regulatory and financial. With a larger team, Dignify would also look to move out of First Flight Venture Center and find a larger space to set up operations.
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