Celator Pharmaceuticals is raising a fund of $5m as its drug therapy for acute myeloid leukemia continues through phase 2 clinical trials.

In the latest financing round, Celator has raised $2.57m of its $5m target through equity, options and securities, medcitynews.com reported.

The company's investors include Quaker BioVentures, Ventures West, Domain Associates and GrowthWorks among its 10 investors.

The company recently reported positive clinical data in first-relapse patients with acute myeloid leukemia treated with CPX-351 liposome injection.

The US Food and Drug Administration (FDA) has issued orphan drug status to CPX-351.

Celator's approach to cancer treatment is based on a synergistic ratio of drugs to improve tumor cell kill and locks the synergistic ratio in a drug-delivery vehicle to maintain the ratio in patients, the company said.