Novaremed Secures CHF 2.6 Million Financing to Advance Non-Opioid Drug for Diabetic Neuropathic Pain

On September 18, 2019, VCBeat (WeChat ID: vcbeat) learned from foreign media reports that the Swiss biopharmaceutical company Novaremed announced the completion of a CHF 2.6 million financing round (the specific round was not disclosed), with investors comprising existing shareholders and several new private investors.

Novaremed, a clinical-stage biopharmaceutical company, was founded in Israel in 2008 and relocated its headquarters to Switzerland in November 2017. The company is developing NRD.E1, an oral non-opioid small-molecule drug with a mechanism of action for treating diabetic neuropathic pain (DNP). Phase 2a clinical trials demonstrated that patients treated with NRD.E1 experienced significant pain reduction. Novaremed is currently preparing for a global Phase 2b study, which is expected to commence in the second or third quarter of 2020.

Diabetic Neuropathy (DNP) is a collective term for various neurological lesions occurring in patients with diabetes. It is one of the most common, complex, and severe complications of diabetes, resulting from nerve damage caused by chronic hyperglycemia and the associated pathological and physiological changes. DNP can affect any part of the peripheral nervous system throughout the body, including sensory nerves, motor nerves, and autonomic nerves.

Clinically, patients with diabetic neuropathic pain (DNP) primarily present with limb pain, hypoesthesia, numbness, burning sensations, and coldness. They may also exhibit spontaneous pain, hyperalgesia, and allodynia, which can progress to diabetic foot ulcers or even necessitate amputation, severely impacting patients' quality of life.

According to WHO estimates, 69,000 people worldwide die from opioid overdoses each year, and 15 million people suffer from opioid addiction. Opioids were previously used only for the management of acute pain and cancer-related pain. However, over the past decade, there has been a trend toward using opioids to alleviate non-cancer chronic pain, such as back pain, which has led to the misuse of these drugs.

The opioid crisis has become the top public health issue in the United States. The biopharmaceutical industry has recognized the severity of this problem and has begun efforts to address the crisis by developing non-opioid therapies for pain management.

Novaremed Prepares to Accelerate the Launch of DNP’s Phase 2b Study. The company expressed satisfaction with the positive feedback received from the recent Pre-IND meeting with the FDA, which has laid the foundation for initiating the Phase 2b study of DNP.

Harry Welten, Chairman of the Board of Novaremed, stated: “This financing round demonstrates the confidence of company shareholders and private investors in Novaremed and NRD.E1. Novaremed will collaborate with the team led by Subhasis to advance the clinical development of its drug candidates and drive corporate operational growth.”

(Compiled by Hu Yifan)