Ayala Pharmaceuticals Files Prospectus Following $30M Series B Financing to Advance Pan-Notch Inhibitors for Genetic Cancers

Ayala Pharmaceuticals, a clinical-stage biopharmaceutical company dedicated to developing targeted therapies for individuals with hereditary cancers, announced the completion of its $30 million Series B financing round. The round was led by Novartis, with participation from SBI JI Innovation Fund, Israel Biotech Fund (IBF), aMoon, and Harel Insurance & Finance Group.

Ayala Pharmaceuticals stated that the current round of capital will be used to advance the clinical development of its lead candidate drug, AL101, a pan-Notch inhibitor currently being evaluated for the treatment of adenoid cystic carcinoma (ACC). The company intends to advance its Phase 2 clinical study in ACC and initiate a Phase 2 clinical trial in triple-negative breast cancer (TNBC).

AL101 is a γ-secretase inhibitor, which is a Notch inhibitor indicated for oncology. The Notch pathway plays an important role in several solid and hematologic malignancies. Following ligand binding to the Notch receptor, a critical step in Notch receptor activation is cleavage by γ-secretase, which releases the Notch intracellular signaling domain. It is also understood that AL101 has been granted orphan drug designation by the FDA.

Furthermore, Ayala Pharmaceuticals is also advancing the development of its AL102 candidate drug for hematologic malignancies, in collaboration with Novartis, for the treatment of multiple myeloma.

Dr. Roni Mamluk, CEO of Ayala Pharmaceuticals, stated: “Novartis’ strategic investment, combined with support from our other investors, underscores the development potential of AL101 and AL102, pan-Notch inhibitors being studied in patient populations with high unmet medical needs. With this funding, we can complete the ongoing Phase 2 clinical trial of AL101 for the treatment of ACC and initiate a Phase 2 study evaluating AL101 as a targeted therapy for patients with TNBC.”

References:

[1] Ayala Pharmaceuticals Raises $30 Million in Series B Financing Retrieved on May 30 2019 from https://www.businesswire.com/news/home/20190528005457/en

[2] Novartis powers Notch cancer biotech Ayala to $30M series B Retrieved on May 30 2019 from https://www.fiercebiotech.com/biotech/novartis-powers-notch-cancer-biotech-ayala-to-30m-series-b