August 5, 2015
By 
Alex Keown
, BioSpace.com Breaking News Staff
SAN DIEGO – A biotech startup mystery has been solved. 
Ronald Evans
’ startup 
Metacrine, Inc.
, which has been in stealth mode since this spring, will develop therapies, to target diabetes, non-alcoholic steatohepatitis (NASH) and other metabolic diseases and liver disorders, the company 
announced
 this morning.
The announcement came after the California-based 
Metacrine, Inc.
 announced it raised an additional $36 million in Series A financing as well as naming a new leadership team, including the appointment of 
Neil McDonnell
, formerly of 
Takeda Pharmaceuticals
 , as its new chief executive officer. In a statement McDonnell said 
Metacrine
 is dedicated to advancing Evans’ research in nuclear hormone receptors. Metacrine said it will be advancing endocrine research through technology licensed from Evans’ laboratory at the 
Salk Institute
. While at 
Takeda
, McDonnell had a history of successfully guiding diabetes drugs to market, including Nesina, Oseni, and Kazano. He also successfully navigated regulatory approval for the obesity drug Contrave, which was developed by 
Takeda
 and 
Orexigen Therapeutics, Inc.
 .
McDonnell told 
Fierce Biotech
 that 
Metacrine
 was armed with an insulin sensitizer and a NASH therapy acquired from the 
Salk Institute
. Beyond that, the company isn’t saying too much about its planned therapies as it plans to navigate the tough waters of diabetes research.
In April
, after announcing it had raised $6.5 million in Form D financing, the company said it had a goal of raising $33 million. At the time 
Metacrine
 did not disclose its end goal, likely in an attempt to prevent competitors from gaining an advantage in the market. There was speculation that 
Metacrine
 would focus on hormonal cancer treatments, a subject the company’s independent director 
Evans
, a professor in the 
Gene Expression Laboratory
 at the 
Salk Institute
, is quite familiar with. Evans’ research at the 
Salk Institute
 is credited with discovering a family of molecules, or receptors, that are primary targets in the treatment of breast cancer, prostate cancer and leukemia, as well as osteoporosis and asthma. 
Evans’ studies also led to a new hormone that appears to be the molecular trigger controlling the formation of fat cells, according to the 
Salk Institute
 website. 
The latest round of financing was led by 
Arch Venture Partners
, 
EcoR1 Capital
, 
Polaris Partners
 and 
venBio
, the company said in a statement. McDonnell said the funding should be sufficient to complete pre-clinical work on two programs with mechanistically distinct endocrine pathway and begin to see efficacy data, 
XConomy reported
. 
Other newly appointed members of the 
Metacrine
 leadership team include 
Trisha Millican
, chief financial officer; 
Nicholas Smith
, senior vice president of chemistry and 
Eric Bischoff
, the vice president of business operations. All three previously served in senior management roles at 
Seragon Pharmaceuticals
, acquired by 
Genentech
 /
Roche
 , and 
Roche
, and 
Aragon Pharmaceuticals
, acquired by 
Johnson & Johnson
 . The company currently has 12 employees, including its executive committee.
In April, 
Meghana Keshavan of MedCity News
, speculated part of 
Metacrine
’s goal is to reassemble some of the top talent from 
Aragon Pharmaceuticals
 and its sister company 
Seragon Pharmaceuticals
 – primarily due to the relationship between Evans and 
Rich Heyman
, a 
Salk
 board member who also founded 
X-Ceptor Therapeutics
 alongside Evans. Heyman was the chief executive officer at 
Seragon
 and also served as president and CEO at 
Aragon
. Until 
Seragon
 shuttered its offices earlier his year, 
Heyman had been overseeing the shut down of Seragon
 following its acquisition by 
Roche
 last year. Heyman is serving as the chairman of 
Metacrine
’s board of directors. 
“There is great potential in the advancement of therapeutics arising from research on endocrine signaling pathways that govern metabolic homeostasis, and 
Metacrine
 is poised to make an impact in advancing some novel therapies in this area,” Heyman said in a statement.