AZTherapies Secures $26.3M Series C Financing to Advance Neurodegenerative Disease Therapies and Files IPO Prospectus

On October 21, 2019, VCBeat (WeChat ID: vcbeat) learned from foreign media reports that biopharmaceutical company AZTherapies announced the completion of a $26.3 million Series C financing round. The round was co-led by Spinnaker Capital and Cosine, with participation from DRADS Capital, IBS Capital, and Wexford Capital.

It is reported that AZTherapies will use the funds from this round of financing to advance the Phase III clinical trial of its candidate drug, ALZT-OP1. The trial, scheduled to commence in 2020, aims to evaluate the safety and efficacy of ALZT-OP1 in treating patients with early-stage Alzheimer’s disease.

AZTherapies, a biopharmaceutical company founded in 2011 and headquartered in Boston, USA, focuses on developing novel therapeutics for neurological disorders such as post-ischemic stroke cognitive impairment and amyotrophic lateral sclerosis (ALS). The company aims to improve the quality of life for elderly patients and seeks effective approaches to slow the progression of neurodegenerative diseases.

Scientific research indicates that neuroinflammation is the fundamental cause of neurodegenerative diseases. Neuritis refers to inflammation, degeneration, or deterioration of human nerves or nerve groups, and patients with this condition may experience motor, sensory, and autonomic nervous system impairments. Neurodegenerative diseases result from the loss of neuronal or myelin sheath function and are classified into acute and chronic forms. The acute form primarily manifests as cerebral ischemia, brain injury, and epilepsy, while the chronic form includes Alzheimer’s disease, Parkinson’s disease, Huntington’s disease, amyotrophic lateral sclerosis (ALS), and spinocerebellar ataxia.

David R. Elmaleh, Ph.D., Founder, Chief Executive Officer, and Chairman of AZTherapies, stated, “We are deeply grateful to all investors for their substantial support of AZTherapies’ research and development of central nervous system therapeutics. We plan to conduct a Phase II clinical trial to evaluate the clinical efficacy of our candidate drug, AZT-101, in patients with cognitive impairment following ischemic stroke. Meanwhile, we will continue to explore the therapeutic potential of this drug for amyotrophic lateral sclerosis (ALS).”

Anastasios Tas Parafestas, Managing Director at Spinnaker Capital, stated, “AZTherapies is a trusted partner. In the Phase III clinical trial of ALZT-OP1, the team combined neuroinflammation therapy with microglial therapy. This represents a breakthrough advancement, offering new treatment options for patients.”

Spinnaker Capital, founded in 1997 and headquartered in Boston, Massachusetts, is a venture capital and asset management firm. The company primarily invests in the healthcare, energy, and mobile communications sectors.

Cosine, founded in 2005 and headquartered in New York, USA, is an investment firm in the biotechnology industry that primarily provides financial support to startups.

DRADS Capital, headquartered in Boston, USA, is a venture capital firm. The company is dedicated to advancing the development of the life sciences, biotechnology, and AI industries.

IBS Capital, a venture capital firm founded in 2007 and headquartered in Boston, USA.

Wexford Capital, founded in 1994 and headquartered in Connecticut, USA, is a venture capital and private equity firm dedicated to investing in startups. Since its inception, Wexford Capital has completed 24 investments and manages over $6.5 billion in assets.

(Compiled by Xu Xiaoxue)