CODA Biotherapeutics Secures $15 Million Series A+ Financing to Advance Chemogenetic Gene Therapy Platform for Neurological Disorders

On November 11, 2019, VCBeat (WeChat ID: vcbeat) learned via Business Wire that biopharmaceutical company CODA Biotherapeutics (CODA) announced the completion of a $15 million Series A+ financing round. The round was led by Versant Ventures, with participation from MPM Capital and Astellas Venture Management.

CODA plans to use the proceeds from this financing round to further develop its platform and solidify its leadership position in core therapeutic areas. Additionally, the company intends to advance its chemogenetic therapy platform into clinical development for the treatment of chronic neuropathic pain and focal epilepsy.

Since its inception, CODA has completed two rounds of financing. In September 2018, it closed a $19 million Series A round, bringing the total amount raised in its Series A financing to $34 million.

CODA, founded in 2014 and headquartered in South San Francisco, California, is a preclinical-stage biopharmaceutical company. The company is dedicated to developing innovative gene therapy platforms and leveraging revolutionary chemogenetic technologies to modulate pathological cellular activity, thereby providing new treatment options for patients with neurological disorders.

Currently, CODA is engineering neurotransmitter receptors using gene-editing technologies and developing orally bioavailable drugs targeting these receptors to treat neurological disorders such as chronic neuropathic pain and focal epilepsy. CODA’s therapeutics are delivered via viral vectors and administered directly to dysfunctional neurons to activate the engineered receptors and modulate neuronal activity.

According to the U.S. Centers for Disease Control and Prevention, more than 19 million people in the United States suffer from chronic neuropathic pain, and epilepsy is one of the most common chronic neurological disorders. Epilepsy affects more than 65 million people worldwide, including 3.4 million in the United States. The National Institute of Neurological Disorders and Stroke reports that focal epilepsy accounts for approximately 60% of all epilepsy cases. Recurrent epileptic seizures can disrupt normal brain function, causing neuronal damage and inactivation, and leading to cognitive impairment and emotional deficits.

Currently, epilepsy is primarily managed through pharmacotherapy and neuromodulation. Therapeutic agents include opioids, anticonvulsants, tricyclic antidepressants, and ion channel inhibitors; however, while these medications alleviate symptoms, they are associated with adverse effects such as addiction. Neuromodulation therapies rely on electrical stimulation devices and carry risks of infection and other complications. Furthermore, surgical resection of pathological neurons is another treatment option for epilepsy, but it may cause permanent detrimental effects on central and peripheral nervous system functions.

Michael Narachi, President and Chief Executive Officer of CODA Biotherapeutics, stated, “CODA’s gene therapy platform holds tremendous development potential. By combining gene therapy with innovative technologies, it brings new hope to millions of patients suffering from refractory neurological disorders. We are deeply grateful for the high expectations placed on us by investors, which will help CODA continue to advance.”

“Dr. Tom Woiwode, Managing Director at Versant Ventures and Chair of CODA, stated, ‘The CODA team has made significant progress in developing tunable, long-acting, and highly selective gene therapy programs that enhance efficacy and safety while reducing off-target effects.’”

Versant Ventures, founded in 1999 and headquartered in Menlo Park, United States, is a venture capital and private equity firm. The company primarily provides early-stage, late-stage, private equity, and debt financing to healthcare enterprises to meet industry demands. With offices in Canada, the United States, and Europe, Versant Ventures focuses on discovering and developing novel therapies and currently manages $2.3 billion in assets.

MPM Capital, founded in 1996 and headquartered in Cambridge, Massachusetts, USA, is a venture capital and private equity firm. The company primarily focuses on the biotechnology, healthcare, and life sciences sectors, providing seed-stage, early-stage, and late-stage investments to enterprises.

Astellas Venture Management, established in 2005 and headquartered in California, USA, is a venture capital firm dedicated to investing in the biotechnology sector.

(Compiled by Xu Xiaoxue)