EpiEndo Pharmaceuticals secured €4.5 million in equity and grant financing.

EpiEndo Pharmaceuticals, a Reykjavik, Iceland-based pharmaceutical company developing a proprietary portfolio of compounds with epithelial barrier enhancing properties, announced getting into a financing agreement for a total of €4.5 million ($5M).

The funding is part equity - €2 million ($2.2M) in a seed round backed by new and existing investors led by led by ABC Venture - and part €2.5m grant from the European Innovation Council (EIC). The grant from comes with a commitment to invest an additional €2.7 million in later stages.

The funds will be used to take the company's candidate drug through GLP tox and API development and get Phase I ready.

This is the 4th seed round the company is raising. Following the deal, ABC Venture ehf becomes the second biggest shareholder, after founder Friðrik Rúnar Garðarsson.

EpiEndo Pharmaceuticals, founded in 2014 and led by CEO Fredrik Lehmann, is focused on novel solutions for chronic airway diseases as is developing a proprietary portfolio of compounds with epithelial barrier enhancing properties.

Prior to this deal, EpiEndo raised almost $1M at the beginning of 2019.