CarthroniX Completes Convertible Note Financing

Proceeds Will Support Pre-clinical Development and Clinical Advancement of its Lead Candidate, CX-011, for the Treatment of Mild to Moderate Knee Osteoarthritis

LOS ANGELES, April 11, 2022 /PRNewswire/ -- CarthroniX, Inc., a California-based startup developing novel small molecule modulators of the cell surface receptor gp130, today announced the completion of a $2.25 million convertible note offering. Pacira BioSciences, Inc. led the financing and was joined by existing investors. The company intends to use the financing to support the final stages of pre-clinical development of CX-011, a first-in-class small molecule injectable therapeutic designed to halt or reverse the progression of mild-to-moderate knee osteoarthritis (OA). The investor consortium has the option to make an equal investment based on the achievement of regulatory milestones.

"We are excited to work with CarthroniX as they share our commitment to offering non-opioid pain relief and improving the continuum of care for patients affected by osteoarthritis," said Ron Ellis, DO, senior vice president of corporate strategy and business development at Pacira BioSciences. "More importantly, this investment advances our mission to provide innovative non-opioid solutions to manage joint pain and potentially address the root cause."

CX-011 is a small molecule modulator of gp130, the cell surface receptor responsible for mediating signaling by all members of the interleukin-6 (IL-6) cytokine family. These cytokines drive both regeneration and chronic inflammation in a highly context specific manner. Signal modulation, allowing for regenerative outputs, while dampening chronic inflammation, is a concept pioneered by CarthroniX. CX-011 is formulated as an intra-articular injection that is anticipated to slow, or even reverse, knee joint degeneration. "Modulation of gp130 via small molecules like CX-011 allows CarthroniX to uniquely harness the regenerative power of inflammation," said Dr. Hassan Serhan, CEO. "Our data demonstrate this approach has major promise for not only joint degeneration, but also fibrotic indications such as idiopathic pulmonary fibrosis."

Intra-articular injection of CX-011 in patients with knee osteoarthritis (OA) is being developed as a first-in-class pharmacological approach to treat chronic knee pain, while potentially preventing progression of osteoarthritis through IL-6 modulation. CarthroniX expects to file an Investigational New Drug (IND) application with the US Food and Drug Administration seeking approval of a Phase 1/2a randomized controlled study of CX-011 later this year and advance into the clinic in early 2023.

Picket Fence Fence IP, LLP is acting as legal advisor to CarthroniX in connection with the transaction.

About Osteoarthritis (OA)

About 32.5 million individuals in the United States have osteoarthritis, or OA. OA is a significant cause of disability in the world and a tremendous expense to the healthcare system. It is associated with a variety of clinical symptoms, including pain, swelling, reduced range of motion and disability of varying levels of severity. There is currently no treatment for the underlying cause of OA and current approaches are aimed at managing pain through a variety of approaches that include physical therapy, over the counter medications like non-steroidal anti-inflammatory drugs (NSAIDS) or prescription opioids. For patients with moderate to severe pain that persists chronically, treatment plans include intra-articular steroid injections, viscosupplementation or surgical intervention. Given the substantial costs, pain, and disability associated with OA, coupled with the lack of an approved disease-modifying agent, a therapy that could relieve pain and increase function with the potential to mediate the progression of OA or achieve a regenerative effect could revolutionize the standard of care.

About CarthroniX

CarthroniX is harnessing the regenerative power of a pathway classically associated with inflammation and pathology: gp130 and the IL-6 family of cytokines. By selectively biasing signaling outcomes from gp130, CarthroniX's small molecules empower unique results in pathological situations. CX-011, CarthroniX's first gp130 modulator, will begin human testing in a Phase 1/2a trial in 2023. Evaluation of other gp130 modulators in veterinary medicine as well as other human indications is actively ongoing.

Contact:
Hassan Serhan
CarthroniX, Inc
43364 10th St. West
Lancaster, CA 93534
[email protected]
www.carthronix.com

SOURCE CarthroniX, Inc.