NeuroTherapia Raises $12.3M in the First Close of its Series B Financing

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Aug 06, 2024, 08:00 ET

Investment will allow NeuroTherapia to continue the development of an orally available treatment for Alzheimer's disease.

CLEVELAND, Aug. 6, 2024 /PRNewswire/ -- NeuroTherapia, Inc., a clinical-stage company and Cleveland Clinic Innovations portfolio company focused on developing therapies for neurodegenerative diseases, announced today the first closing of its Series B financing with $12.3M in funding. The Series B 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) as well as 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). 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.

"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," commented Joseph Rich, JD, MBA, Senior Director, Cleveland Clinic Innovations, and lead investor representative in this financing. "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."

Coincident with the financing, the company welcomes Adam Hoffman to its Board of Directors as an Observer. Mr. Hoffman is an experienced investor and entrepreneur, currently serving as President of Foundation for a Better World. Mr. 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.

"We are extremely fortunate to have the continued support of our previous investors and to add new investors with significant AD experience," said Dr. Giordano. "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."

In addition to 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 its 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. 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 has also identified second-generation molecules that will be advanced for other indications associated with increased neuroinflammation, such as pain, Parkinson's disease or ALS.

About NeuroTherapia

NeuroTherapia is a clinical-stage, privately held biotechnology company developing oral, small-molecule drugs to address neuro-inflammatory conditions of the central nervous system (CNS), including Alzheimer's disease, Parkinson's disease, amyotrophic lateral sclerosis, and other CNS conditions. There is an emerging consensus that neuroinflammation plays a significant role in CNS disease. NeuroTherapia is developing therapeutics that inhibit microglia cells, which are known to express proteins that drive inflammation in the CNS, without affecting the clearance of toxic beta amyloid. We believe this approach will result in improved neuronal function and survival. At NeuroTherapia, our mission is to change the course of the most debilitating and deadly CNS diseases that patients and their families face today. Additional information about NeuroTherapia can be found at www.neurotherapia.com.

About The Alzheimer's Drug Discovery Foundation (ADDF)
Founded in 1998 by Leonard A. and Ronald S. Lauder, the Alzheimer's Drug Discovery Foundation is dedicated to rapidly accelerating the discovery of drugs to prevent, treat and cure Alzheimer's disease. The ADDF is the only public charity solely focused on funding the development of drugs for Alzheimer's, employing a venture philanthropy model to support research in academia and the biotech industry. The ADDF's leadership and contributions to the field have played a pivotal role in bringing the first Alzheimer's PET scan (Amyvid^®) and blood test (PrecivityAD^®) to market, as well as fueling the current robust and diverse drug pipeline. Through the generosity of its donors, the ADDF has awarded more than $290 million to fund over 750 Alzheimer's drug discovery programs, biomarker programs and clinical trials in 20 countries. To learn more, please visit: http://www.alzdiscovery.org/.

SOURCE NeuroTherapia, Inc.