Achaogen Receives Investment from Gates Foundation

Achaogen announced it has signed an agreement with the Bill & Melinda Gates Foundation to prevent neonatal sepsis in developing countries through the generation of monoclonal antibodies against gram-negative bacteria. Neonatal sepsis, a bacterial bloodstream infection (BSI) in newborn babies, causes approximately 345,000 deaths per year worldwide.

Achaogen will receive up to $10.5 million in grant funding along with a $10 million equity investment through a purchase of the company’s common stock. The initial grant will support the discovery of monoclonal antibody candidates targeting Acinetobacter baumannii, a leading cause of neonatal sepsis and a major focus of Achaogen’s internal bactericidal antibody program. If successful, future grant funding could support additional antibody discovery and development efforts. The equity investment will significantly accelerate the overall development of Achaogen’s monoclonal antibody discovery platform with the intention of applying this platform to identify novel solutions to prevent and treat infections, including those that disproportionately impact the poor.

"We are honored to partner with the Gates Foundation on this important work, which is aligned with our mission to discover and develop treatments to combat infections caused by gram-negative pathogens," Kenneth Hillan, M.B. Ch.B., Achaogen's Chief Executive Officer said. "This investment enables us to effectively pursue antibodies against neonatal sepsis while accelerating the development of our antibody platform. We are dedicated to improving the lives of patients with serious bacterial infections, and this innovative partnership and support from the Gates Foundation furthers that commitment."

The investment by the Gates Foundation was made as part of its program-related investments strategy, which aims to stimulate private sector-driven innovation, encourage market-driven efficiencies and attract external capital to priority global health and development initiatives that improve the lives of the world’s most vulnerable people.

"Neonatal sepsis remains one of the deadliest conditions afflicting newborns globally, claiming the lives of hundreds of thousands of infants each year," Trevor Mundel, President of Global Health at the Gates Foundation said. "The successful development of simple and sustainable prophylactics and therapeutics would make a tremendous impact towards decreasing neonatal mortality in developing countries. Achaogen’s expertise in gram-negative infections combined with their understanding of monoclonal antibody development will be important for the success of this approach and we look forward to a sustained partnership."