A new startup developing a drug for neurological diseases has raised $36 million from venture capitalists in a Series A round.
Neuraly, spun out of Johns Hopkins University, announced its launch and the funding round Wednesday, along with the publication of preclinical data on its initial product candidate, NLY01. The drug, which the company plans to enter into a Phase I clinical trial this year, is a brain-penetrant, long-acting glucagon-like peptide-1 (GLP-1) receptor agonist with potential to treat Alzheimer’s disease and Parkinson’s disease. However, while confirming that the study is on track to initiate this year, but without saying what time of the year, Lee did not disclose how many sites would participate or where they would be located.
Seongnam, South Korea-based holding company D&D Pharmatech led the round, with participation by Korean venture capital firms Smilegate Investment, InterVest, LB Investment, Magna Investment, Geon Investment and Dongkoo Bio&Pharma. Octave Life Sciences and the Maryland Venture Fund, both based in the US, also participated. The Korean firms are also investors in D&D Pharmatech, and CEO and co-founder Seulki Lee explained in an email that part of the research and technology came from scientists affiliated with Korean research institutes and D&D co-founders.
GLP-1 agonists are well-established in the treatment of Type 2 diabetes, with approved drugs in the class including Novo Nordisk’s Victoza (liraglutide) and Ozempic (semaglutide) and Sanofi’s Lyxumia (lixisenatide), among others. In addition, research has shown them to have neuroprotective effects in neurological diseases like Alzheimer’s. Compared with once-daily GLP-1 agonists, NLY01 is designed to be once-weekly, Lee said.
A study in mice published in Nature Medicine last month showed that the drug prevented neuronal cell death by inhibiting microglial activation and formation of A1 neurotoxic astroglial cells, thereby slowing down progression of Parkinson’s disease, improving motor and cognitive functions and prolonging the mice’s lifespans. The data show the role of the glial compartment of the neural tissue in the development of diseases like Parkinson’s and Alzheimer’s, the company said.
Photo: wildpixel, Getty Images
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