CHARLOTTESVILLE, Va.—TearSolutions Inc., a biopharmaceutical company based here, said it has completed a $6.4 million financing round consisting of preferred stock and convertible promissory notes. The financing round was led by VTC Innovation Fund (Virginia Tech Carilion) and included the University of Virginia Seed Fund, MEDARVA Foundation, and PharmStandard Ventures, all of whom have previously invested in the company, according to the announcement this week. The funds will be used by TearSolutions to complete a pivotal FDA Phase II clinical trial for Lacripep, its lead product candidate, the announcement noted. The clinical trial is being conducted with 201 primary Sjögren’s Syndrome dry eye patients at 27 investigational sites across the U.S.

A new site is opening soon at the University of Virginia. Lacripep is a naturally occurring peptide found in normal tears that has been shown to be deficient in all forms of dry eye tears. Primary Sjögren’s Syndrome patient’s tears are particularly deficient in Lacripep. Administration of Lacripep in a Sjögren’s animal model has shown a dramatic restoration of normal tearing and corneal health, according to the company’s announcement.

TearSolutions was founded in 2013 to commercialize the pioneering NIH funded research on tears carried out by Dr. Gordon Laurie, a professor in the University of Virginia’s School of Medicine. Dr. Laurie and his co-founder, Mark Logan, who has held leadership positions in the pharmaceutical industry, formed the company and licensed the patents from the University of Virginia Licensing and Venture Group. They have assembled an outstanding and experienced management team, led by Tom Gadek, president and chief executive officer, according to this week’s announcement.

Dr. Gadek in his former position developed the dry eye product Xiidra, currently being marketed by Shire, according to TearSolutions’ announcement.

“The dry eye market in the United States is just over $2 billion, and neither of the two FDA-approved products address the root cause”, Dr. Gadek said in the announcement. “As a natural replacement therapy, Lacripep could meet a huge unmet need,” he added.