Hydra Biosciences Inc., fighting death and degeneration at the cellular level, raised $9.3 million in its first round of financing.

The Cambridge, Mass.-based company, incorporated in June 2001, is growing around a platform designed to develop molecular regeneration medicines. It is still small at seven employees, but with the funding it expects to increase that to 15 or 20 in a year's time.

"We'll use the funds to expand our team with scientific talent and management talent," said Laurie Keating, Hydra's CEO. "We'll bring on a head of business development during the next year. It'll also provide the capital for running our lab and operations. We're very satisfied that this will meet our needs well into the second year of our existence."

Hydra uses genomics, signal transduction and assays for cell dedifferentiation and redifferentiation. The company expects to discover proteins and small molecules that are able to reprogram a patient's mature cells to become cells that multiply and replace damaged or destroyed cells. This is not new - the raging stem cell debate includes this line of science - but Hydra's small-molecule and protein approach is unique, Keating said. With that alternate approach to cell-based therapies, Hydra doesn't think it will face the bioethical issues that swirl around stem cells.

The company was founded by four individuals: Keating, David Clapham, Dean Li and Mark Keating, Laurie's husband since 1988. Mark Keating is a member of Hydra's scientific advisory board. The science behind Hydra's technology began in Mark Keating's lab about six or seven years ago when he was working at the University of Utah. Hydra has an exclusive license to the pending patents associated with that work. Although the technology is broadly applicable, the early focus for Hydra will be cardiovascular indications, Laurie Keating said, in part because of the large associated market opportunity. But the technology has applications in the central nervous system area, retinal diseases and skin and joint disorders, she said, adding that Hydra will take "a hybrid approach" to its business model.

"We expect to collaborate relatively early in some areas," she said. "But for areas that are more core, we plan to explore them internally for a longer period of time."

With its near-term financial outlook secured, Hydra can focus on other aspects of the company. Laurie Keating said signing a collaboration "with a major pharma company would be very positive for the company." Also, discovering additional regeneration genes. Its therapy for proliferative vascular disease is in animal studies now, and further studies are in the works. And Hydra needs to "round out its team," she said.

With the round closed, the company can pause and relax; then it's back to the lab.

"We are excited about advancing the science along a commercial path," Laurie Keating said. "We think it has great, great potential, especially with respect to degenerative diseases."

The financing round was led by Polaris Venture Partners, of Waltham, Mass., with Abingworth, of London, a co-leader. Also participating were New Enterprise Associates, of Baltimore; Advanced Technology Ventures, of Waltham; Boston Medical Investors, of Boston; and several individuals.