D&D Pharmatech Secures $137 Million Series B Financing to Advance Innovative NASH Therapies and Neurodegenerative Disease Programs

On August 15, 2019, VCBeat (WeChat ID: vcbeat) learned from foreign media reports that biotechnology company D&D Pharmatech announced the completion of a $137 million Series B financing round. The proceeds will be used to advance Neuraly’s clinical candidate for treating neurodegenerative diseases into Phase II clinical trials; support Precision Molecular in advancing its neuroinflammation imaging agent into Phase I and Phase II clinical trials; enable Theraly to move its preclinical candidate for treating fibrosis into Phase I/II clinical trials; and facilitate the development of innovative therapies for neurodegenerative diseases and NASH.

This round of financing was co-led by Octave Life Sciences and the South Korean venture capital fund Smilegate Investment, with participation from Series A investors InterVest, Magna Investment, and LB Investment.

D&D Pharmatech, founded in 2015 and headquartered in South Korea, is a clinical-stage biotechnology company focused on the development and commercialization of revolutionary therapeutics. The company is the parent organization of U.S.-based Neuraly, Precision Molecular, and Theraly Fibrosis.

D&D Pharmatech conducts development activities in the fields of neurodegenerative diseases, fibrotic diseases, metabolic disorders, and molecular imaging through its subsidiaries. Neuraly’s flagship drug, NLY01, is a highly potent, long-acting glucagon-like peptide-1 receptor (GLP-1R) agonist that is currently under research and development.

NLY01 can slow the progression of neurodegenerative diseases, including Parkinson’s disease (PD) and Alzheimer’s disease (AD), by inhibiting microglial activation and the resulting neuroinflammation. Phase II clinical trials for Parkinson’s disease and Alzheimer’s disease are expected to commence in 2019 and 2020, respectively.

Precision Molecular is advancing four positron emission tomography (PET) imaging agents in clinical development and one under an Investigational New Drug (IND) application, designed for the early detection and management of neuroinflammation in patients with Parkinson’s disease and Alzheimer’s disease. The clinical candidates include agents that target proteins expressed in activated microglia and those involved in neuroinflammatory pathways. Non-invasive imaging of these cells and proteins offers a novel approach to evaluating the efficacy of new therapeutics such as NLY01, while also aiding in the identification of patients at early or asymptomatic stages. Precision Molecular aims to secure FDA approval and unlock new opportunities in the diagnostic market.

Theraly Fibrosis’s lead drug candidate, TLY012, selectively targets myofibroblasts. These cells are considered the key origin of fibrosis, a disease affecting multiple tissues. TLY012 has reversed established fibrosis in preclinical models of liver, pancreatic, and skin diseases, demonstrating potential for treating fibrotic conditions, including systemic sclerosis, liver fibrosis/cirrhosis, chronic pancreatitis, and certain cancers driven by fibrosis. Phase 1/2 clinical trials for the treatment of chronic pancreatitis and non-alcoholic steatohepatitis (NASH)/liver fibrosis were expected to commence in 2020.

“With this funding, we will continue to execute our strategy and develop truly novel approaches to treating challenging diseases with significant unmet needs,” said Dr. Sung Mook Lim, CEO of D&D Pharmatech.

“Scientists at Johns Hopkins University have played a pivotal role in elucidating the core underlying mechanisms of neurodegenerative and fibrotic diseases. These scientists also form the scientific backbone of our company. Their insights have enabled our team to identify therapeutic candidates with the potential to transform the current treatment landscape. The combination of expertise in this field, world-class drug development capabilities, and secured funding will drive the continuous advancement of our clinical and preclinical programs,” added Dr. Sung Mook Lim.

Octave Life Sciences is a venture capital firm that invested in Neuraly on July 18, 2018.

Stassets Investment, established in 1999 and headquartered in Seongnam, South Korea, is a venture capital firm. The company focuses on the pharmaceuticals, medical devices, digital health, cosmeceuticals, and nutraceuticals sectors, primarily investing in startups. Stassets Investment boasts an experienced investment team that not only provides financial support to entrepreneurial companies but also assists them in making strategic decisions.

InterVest, a financial services company headquartered in Washington, USA, was founded in 1987. The company has invested in numerous biotechnology and biopharmaceutical enterprises, including Neuraly, ExoCoBio, and ImmunoMet Therapeutics.

Magna Investment, established in 2010 and headquartered in Seoul, South Korea, is a venture capital fund. The fund is dedicated to investing in small and medium-sized startups, identifying high-potential enterprises, and generating returns through strategic investments. In 2018, Magna Investment managed a total fund size of KRW 178.7 billion and oversaw 11 venture capital associations.

(Compiled by Cheng Tao)