Lyra Therapeutics Secures $29.5M Series B Financing to Advance Long-Acting Therapy for Chronic Rhinosinusitis

Recently, VCBeat (WeChat ID: VCbeat) learned that Lyra Therapeutics, a clinical-stage biotechnology company, has completed a $29.5 million Series B financing round. The round was led by Perceptive Advisors, with participation from new investors RA Capital Management, ArrowMark Partners, and Soleus Capital, as well as existing investors Polaris Venture Partners, North Bridge Venture Partners, and Intersouth Partners. Details of previous funding rounds have not been disclosed. Additionally, Michael Altman from Perceptive Advisors has joined Lyra’s Board of Directors.

Lyra will utilize this round of financing to advance its lead drug candidate, LYR-210, into Phase II clinical trials for chronic rhinosinusitis (CRS), as well as to apply its proprietary transmucosal platform to the treatment of other ear, nose, and throat disorders.

Chronic rhinosinusitis (CRS) is a debilitating disease caused by inflammation of the sinus tissues. Data from the U.S. Centers for Disease Control and Prevention indicate that approximately 27 million people in the United States suffer from CRS, with an adult prevalence rate of 11%. LYR-210 can be placed directly into the patient’s inflamed sinus passages prior to surgery. Through Lyra’s transmucosal delivery system, it penetrates deep into the nasal and sinus tissues, releasing a customized, long-acting formulation of the approved steroid mometasone furoate for up to six months.

Image from Lyra's official website

LYR-210 is the only drug capable of single-administration, six-month sustained release, and is poised to become one of the first therapeutics for the treatment of chronic rhinosinusitis (CRS). Phase I clinical trials have demonstrated that LYR-210 exhibits a favorable safety and tolerability profile, significantly improving disease outcomes in patients with CRS, including those with CRS with nasal polyps.

Currently, Lyra’s biggest competitor is Otonomy, a biotechnology company focused on innovative therapies for ear disorders. Its main products include OTIVIDEX, a new drug for treating Ménière's disease (characterized primarily by episodic vertigo, tinnitus, and hearing loss), which has demonstrated favorable efficacy in Phase III clinical trials; OTIPRIO, a single-dose ciprofloxacin formulation for the treatment of acute otitis media (which has completed Phase II clinical trials); and OTO-313, an NMDA receptor antagonist for the treatment of tinnitus (with Phase I/II clinical studies expected to commence in 2019).

Michael Altman of Perceptive Advisors stated, “Lyra Therapeutics is pioneering a rapidly evolving new therapeutic approach in the field of otolaryngology. Its lead candidate, LYR-210, has made significant progress, and the company is poised to develop additional therapies for other otolaryngological conditions. We look forward to the new pathways Lyra is opening up in the treatment of ear, nose, and throat diseases, bringing more innovative medicines to patients.”

Lyra Therapeutics, headquartered in Boston and formerly known as 480 Biomedical, is a clinical-stage biotechnology company. Lyra focuses on developing pharmaceuticals for ear, nose, and throat (ENT) diseases, as well as designing alternatives to conventional treatments or surgeries. Its lead candidate, LYR-210, delivers anti-inflammatory medication deep into nasal tissues, providing therapeutic effects for up to six months. Leveraging proprietary technologies in drug development and materials science, Lyra has developed transmucosal therapeutic systems (polymer matrix-based delivery systems) to enable targeted treatment of inflammatory sites within the nasal and sinus passages.