NeuroTherapia, a clinical-stage company and Cleveland Clinic Innovations portfolio company focused on developing therapies for neurodegenerative diseases, announced the first closing of its Series B financing with $12.3 million in funding. The Series B funding round, led by Cleveland Clinic, includes all previous investors, Brain Trust Accelerator Fund II, Dolby Family Ventures, and the Alzheimer’s Drug Discovery Foundation (ADDF), and new investors, Foundation for a Better World, and CRUINT.
NeuroTherapia is using this funding primarily for the continued clinical development of NTRX-07, an orally available cannabinoid receptor agonist, for the treatment of Alzheimer’s disease (AD). And the company will continue to raise additional funds for its second close in six months, which will enable development of a recently discovered second generation molecule for a separate indication in which neuroinflammation plays a major role.
Coincident with the funding, the company welcomes Adam Hoffman to its Board of Directors as an Observer. Hoffman is an experienced investor and entrepreneur, currently serving as President of Foundation for a Better World. Hoffman joins Mr. Reher, who will continue to serve as Chairman of the Board, Tony Giordano, Ph.D., NeuroTherapia’s President and CEO, and Joseph Rich and Jim Ellis from Cleveland Clinic and Akhil Saklecha, M.D., the CSO at Danaher, on the Board. In addition, Meriel Owen, Ph.D., Director of Search and Evaluation at the ADDF, serves as an Observer.
Along with the Phase 2a trial, NeuroTherapia will use funding from this financing to study NTRX-07 in a preclinical model of ARIA (a significant side effect observed with administration of therapeutic monoclonal antibodies) in combination with therapeutic monoclonal antibodies. Based on the mechanism of action, NTRX-07 may reduce or prevent the ARIA side effect associated with monoclonal antibody treatment and/or improve the benefits of these therapies. Plus, a demonstration of activity in the preclinical ARIA study could lead to subsequent trials where NTRX-07 is used in combination with the therapeutic monoclonal antibodies to provide additional patient benefits. The company also identified second-generation molecules that will be advanced for other indications associated with increased neuroinflammation like pain, Parkinson’s disease, or ALS.
KEY QUOTES:
“We were pleased with the Phase 1b trial results that demonstrated a trend toward cognitive benefits in Alzheimer’s disease and wanted to continue its development as rapidly as possible. We believe that the company’s planned Phase 2a trial has the potential to not only demonstrate the ability of NTRX-07 to inhibit neuroinflammation, but it could also lead to an improvement in biomarkers of cognitive function in patients with Alzheimer’s disease.”
- Joseph Rich, JD, MBA, Senior Director, Cleveland Clinic Innovations, and lead investor representative in this financing
“We are extremely fortunate to have the continued support of our previous investors and to add new investors with significant AD experience. The Board has provided invaluable insights over the past 4+ years and I am excited to continue to work with them to advance NTRX-07 for treating AD.”
- Dr. Giordano
