Pipeline Therapeutics Secures $30 Million Series B Financing to Advance Commercialization of Neuroregenerative Therapies

VCBeat (WeChat ID: vcbeat) learned via Business Wire that on December 18, 2019, U.S. biopharmaceutical company Pipeline Therapeutics announced the completion of a $30 million Series B financing round. The round was led by Sectoral Asset Management, with participation from Versant Ventures, Cleva Pharma Capital, RBV Capital, and Hadean Ventures.

Concurrent with this financing round, Dr. Stefan Larson, Partner at Sectoral Asset Management, and Todd Brady, Investment Director at Brace Pharma Capital, have joined the Board of Directors of Pipeline Therapeutics.

This round of financing will be used by Pipeline Therapeutics Inc. to advance the commercialization of its neuroregenerative therapy portfolio, bringing its R&D drug products to more patients suffering from neurological disorders.

Pipeline Therapeutics, a biopharmaceutical company founded in 2017 and headquartered in San Diego, California, USA, is dedicated to advancing the research and development and commercialization of neuroregenerative therapies, including synaptogenesis, remyelination, and axonal repair.

Pipeline Therapeutics’ lead candidate, PIPE-505, for the treatment of sensorineural hearing loss (SNHL) associated with cochlear synaptopathy has entered Phase 1b/2a clinical trials. PIPE-505 offers a unique therapeutic effect; following administration, patients may experience improved hearing and enhanced clarity of speech perception, thereby addressing hearing loss caused by two distinct pathological mechanisms.

In addition, Pipeline Therapeutics Inc. is also developing a selective M1 receptor antagonist named PIPE-307 for the treatment of multiple sclerosis and other demyelinating diseases. PIPE-307 has the ability to regenerate myelin in the output channels of neurons, thereby treating multiple sclerosis.

Carmine Stengone, President and Chief Executive Officer of Pipeline Therapeutics, stated, “This investment validates our novel neuroregenerative therapies developed for indications with high unmet medical needs. We are deeply grateful to the investors in this financing round, which will advance multiple Pipeline Therapeutics programs into clinical trials.”

Dr. Clare Ozawa, Managing Director at Versant Ventures, stated, “As a founding investor in Pipeline Therapeutics, we are delighted to see the company complete this milestone financing round. Pipeline Therapeutics is a pioneer in novel therapies for neural regeneration science, offering significant hope for many indications, including addressing the unmet medical need for hearing loss treatment.”

Sectoral Asset Management, established in 2000, is a private equity investment firm headquartered in Montreal, Canada. As an industry-leading expert in managing global portfolios within the healthcare sector, it specializes in equity management for the global healthcare industry.

Versant Ventures is a U.S.-based healthcare investment firm. The company invests in healthcare companies across all stages, assisting them with operations and the development of new therapies. To date, Versant Ventures has completed 40 mergers and acquisitions, helped 34 companies go public through initial public offerings (IPOs), and manages $3 billion in assets.

(Compiled by Wang Fang)