D&D Pharmatech Inc., a Gyeonggi-Do, Korea and Germantown, Md.-based clinical-stage biotechnology company, closed a $137.1m Series B round of financing.
The round was led by Octave Life Sciences and included major Korean venture funds Smilegate Investment as co-lead, along with InterVest, Magna Investment and LB Investment, all Series A investors. Individual shareholders/co-founders and employees from U.S. and Korea also participated in this financing.
This new round adds to the $16.6 million the company secured in March, 2018.
Led by Dr. Sung Mook Lim, Chief Executive Officer, D&D Pharmatech is focused on development and commercialization of innovative medicines, and parent company of U.S.-based Neuraly Inc., Precision Molecular, Inc. and Theraly Fibrosis Inc.
The funds will be used by:
– Neuraly to advance a clinical candidate targeting neurodegenerative diseases into Phase II studies,
– Precision Molecular to advance several neuroinflammation imaging agents into Phase I and Phase II trials, and
– Theraly to advance a preclinical candidate targeting fibrosis into a Phase I/II trial.
Neuraly’s lead asset is NLY01, a potent, long-acting glucagon-like peptide-1 receptor (GLP-1R) agonist. NLY01 is being developed as an agent with the potential to slow the progression of neurodegenerative disorders including Parkinson’s disease and Alzheimer’s disease through inhibition of microglial activation and the resulting neuroinflammation.
Phase II clinical trials for Parkinson’s and Alzheimer’s are expected to be initiated in 2019 and 2020, respectively.
Precision Molecular is advancing four clinical stage and one IND-enabling stage PET imaging agents for early detection and management of neuroinflammation in Alzheimer’s and Parkinson’s patients. Clinical agents include those targeting proteins expressed in activated microglia and proteins involved in neuroinflammation. Non-invasive imaging of these cells and proteins may provide a direct approach to test new medications such as NLY01 for the therapeutic potential to reduce microglia-associated neuroinflammation and help identify early stage and asymptomatic patients. The company aims to receive the FDA approval for such agents and open up new opportunities for the diagnostic market.
Theraly Fibrosis’ lead candidate, TLY012, selectively targets myofibroblasts, cells believed to be the critical originators of fibrosis, a condition that affects a variety of tissues. TLY012 reversed established fibrosis in preclinical models of the disease in liver, pancreas and skin and has the potential to cure fibrotic diseases, including systemic sclerosis, liver fibrosis/cirrhosis, and chronic pancreatitis, as well as fibrosis-driven cancers. Phase I/II trials are expected to be initiated in 2020 for chronic pancreatitis and NASH/liver fibrosis.