Acetylon raises $15mm in Series B-2 funding from Celgene

Acetylon Pharmaceuticals Inc. (histone deacetylase inhibitors) has brought in $15mm through an untranched purchase by Celgene Corp. of its Series B-2 preferred stock. The start-up most recently closed a three-tranche $28mm Series B round in August 2011 and, with this financing, brings its equity total to $50mm. Acetylon has an HDAC inhibitor, ACY1215, in Phase I/II for multiple myeloma. Celgene, which is also developing HDAC inhibitors for cancer such as the FDA-approved Istodax (romidepsin), receives no options or licensing rights to Acetylon’s technologies in exchange for the investment, its first in the company. Mark Alles, Celgene’s chief commercial officer, has been appointed as a non-voting observer to the Acetylon board.