Axial Biotherapeutics Secures $25 Million Series B Financing to Advance Gut-Targeted Therapies for Parkinson’s Disease and Autism Spectrum Disorder

VCBeat (WeChat Official Account: vcbeat) learned from foreign media that Axial Biotherapeutics, a company specializing in the treatment of neurological disorders, completed a $25 million Series B financing round on February 27. The proceeds will be used to advance a gut-targeted clinical program for Parkinson’s disease (PD) and autism spectrum disorder (ASD). It is reported that this round of financing was jointly participated by existing Series A investors Longwood Fund, Domain Associates, and Heritage Medical Systems, as well as new investors Seventure Partners, Health for Life Capital, and several high-net-worth individuals from Southern California.

Axial Biotherapeutics is a clinical-stage biopharmaceutical company that leverages the connection between gastrointestinal microbes and the nervous system to develop novel brain-gut therapies for the central nervous system (CNS), aimed at improving disease outcomes in patients with CNS disorders.

The brain-gut axis is the interface where the brain and the gut are connected via various neurotransmitters. Research from University College Cork indicates that gut microbiota can influence the formation of myelin, the insulating membrane surrounding neuronal axons, thereby affecting the transmission of nerve impulses. Extensive preclinical studies have demonstrated a correlation between gut bacteria and certain neurological disorders, such as autism and Parkinson’s disease.

In autism spectrum disorder (ASD), human commensal bacterial therapy has been shown to alleviate ASD symptoms by improving intestinal permeability and restoring the healthy state of the gut microbiota. Furthermore, a gut-selective non-bacterial therapy developed by Axial Biotherapeutics has demonstrated the ability to maintain blood-brain barrier integrity and improve both core and non-core behavioral symptoms associated with ASD. Currently, the company’s lead candidate for treating ASD is AB-2004, which has been shown in animal models to repair leaky gut by removing key microbial metabolites, thereby improving ASD-related motor control behaviors. AB-2004 was expected to enter human clinical trials in the first quarter of 2019.

In addition to ASD, Axial Biotherapeutics is also focused on Parkinson’s disease (PD). In PD models, the company has identified a pathway that can improve PD symptoms by inducing gastrointestinal microbial motility. Currently, Axial Biotherapeutics has two candidate products, AB-4166 and AB-4000, available for the treatment of PD. Among them, AB-4166 is a first-in-class intervention, and Axial Biotherapeutics is currently evaluating its safety and tolerability in a subgroup of PD subjects. Meanwhile, AB-4000 comprises multiple novel chemical entities under development, showing potential as next-generation drug candidates for neurodegenerative diseases, including PD.

Isabelle de Crémoux, Partner at Seventure Partners, stated, “We are impressed by Axial Biotherapeutics’ approach to treating neurological disorders by modulating the gut microbiome. We hope that Axial Biotherapeutics’ pipeline will rapidly translate into transformative therapies.”

Axial Biotherapeutics, founded in 2016 and headquartered in Boston, USA, completed a $19.5 million Series A financing round on November 30, 2016, and secured $20 million in venture capital financing on November 9, 2018.

Longwood Fund is a U.S.-based fund management firm established in 2010. The firm primarily provides financial support to companies in the healthcare industry, committed to identifying therapies that transform patients’ lives and ensuring that each investment creates greater value. Longwood Fund has invested in more than twenty companies, including TScan Therapeutics, ArcherDX, and Sitryx Therapeutics Limited.

Domain Associates is a venture capital firm focused on the life sciences sector. Founded in 1985 and headquartered in New Jersey, USA, the firm manages $2.5 billion in assets, primarily investing in pharmaceuticals, specialty drugs, and medical devices. Additionally, Domain Associates has participated in the founding and development of more than 200 healthcare companies, establishing itself as one of the leading private investment teams in the healthcare industry.

Heritage Medical Systems, established in 2010, is an organization providing healthcare management and health services. The institution is primarily dedicated to securing government funding for families, children, the elderly, and individuals with complex medical needs, serving over five million members nationwide. Additionally, Heritage Medical Systems operates 17 independent brands.

Seventure Partners, established in 1997, is one of Europe’s leading venture capital firms. The firm primarily focuses on two sectors: digital technologies and life sciences. As of December 31, 2016, it managed €660 million in assets and comprised 15 investment professionals who possess strong track records and deep expertise in technology, entrepreneurship, and various private equity disciplines.

Health for Life Capital is an early-stage investment firm that primarily invests in small and medium-sized enterprises in the fields of digital health, medical devices, biopharmaceuticals, and life sciences, with a focus on the microbiome (gut flora), gastrointestinal infections, and nutrition. The company mainly invests in the United States, Canada, and Asia.

(Editor: Wang Chan)