CLEVELAND, Sept. 22, 2020 /PRNewswire/ -- NeuroTherapia, Inc., a clinical-stage company focused on developing therapies for neurodegenerative diseases, announced today the closing of its Series A financing of $8.8M. The Series A round, led by Brain Trust Accelerator Fund II, included investments from The Cleveland Clinic Foundation, Dolby Family Ventures and Alzheimer's Drug Discovery Foundation. NeuroTherapia is developing an orally available cannabinoid receptor agonist, NTRX-07, for the treatment of neuroinflammation, which likely plays a critical role in the progression of neurodegenerative diseases.
"We were particularly attracted to this novel strategy for inhibiting neuroinflammation," commented John Reher, managing director of Brain Trust and lead investor in this financing. "We believe that inhibiting neuroinflammation may be beneficial not only for treating neurodegenerative diseases but could also be an important strategy for treating other brain disorders such as glioblastoma."
Coincident with the financing, the company welcomes Karoly Nikolich, Ph.D. to its Board of Directors. Dr. Nikolich is an experienced scientist and entrepreneur, co-founding a number of biotech companies, and currently serving as CEO of Alkahest. He also led Genentech's entry into neuroscience and served as a venture partner with Pivotal BioVenture Partners. Dr. Nikolich joins Mr. Reher, who will serve as Chairman of the Board, Tony Giordano, Ph.D., NeuroTherapia's President and CEO, and Akhil Saklecha, M.D., from Cleveland Clinic on the Board.
NeuroTherapia is currently completing its first-in-human clinical trial using NTRX-07 with funding provided in part by a grant from the Alzheimer's Association. The company will use the Series A funds to finish this work while also undertaking a number of preclinical studies. The additional studies are designed to support subsequent clinical trials in subjects with neurodegeneration to show safety following longer-term administration, as well as to demonstrate biological activity.
"We are extremely fortunate to have this tremendous group of venture capitalists working with us," said Dr. Giordano. "Their expertise in developing molecules for brain disorders is greatly appreciated and I look forward to working with them in advancing NTRX-07 and our emerging pipeline of products."
NeuroTherapia also recently received a $150,000 Technology Validation and Start-up Fund grant from the Ohio Third Frontier program of the Ohio Development Services Agency, which will allow the Company to complete additional research on the biodistribution of NTRX-07 following radiolabeling of the molecule.
NeuroTherapia, Inc. is a Cleveland-based biotech company developing a novel small molecule, NTRX-07, for the treatment of neurodegenerative disorders. NTRX-07 is a small orally-available molecule that targets receptors that are known to be increased in diseases including Alzheimer's disease (AD), ALS, MS and chronic pain syndromes. In various animal models of AD, NTRX-07 restored normal function of the microglia (key immune cells in the brain), which in turn decreased microglial-induced inflammation, reduced levels of the Alzheimer's associated Ab peptide in the brain, and substantially improved neuronal synaptic plasticity, learning, and memory. Additional information about NeuroTherapia can be found at www.neurotherapia.com.