Oversubscribed Round: Serenex Lands $31M in New Financing

Durham, N.C. — Drug development firm Serenex has closed on a $26 million round of financing, with four new investors participating in the “D” round.

Serenex also secured an additional $5 million working capital debt facility.

Intersouth partners in Durham participated in the round as one of the previous investors in Serenex. New investors include Cornell Capital Partners, Pearl Street Ventures, MC Life Science Ventures and Pac-Link Bio Venture Capital.

Previous investors in addition to Intersouth include Ritchie Capital, Lilly Ventures, Mediphase Venture Partners, Takeda Research Investment and Seaflower Ventures.

The company has now raised some $81 million in venture capital.

Serenex will use the funds to finance further development of two drug candidates targeting oncology as well as programs focused on antifungal, anti-neurodegenerative, antiviral and other non-oncology research.

Serenex is also seeking several patents.

The oncology drug candidates are called SNX-1012 and SNX-5422.

"Serenex's many strengths include an experienced management team, two valuable assets in SNX-1012 and SNX-5422, a proven discovery platform and a promising pre-clinical pipeline,” said Michael Nowak of Cornell Capital Partners.

SNX-1012 is in Phase 2 clinical trial. It is designed to help combat inflammation and ulceration in the mouths and digestive tracts of patients receiving chemotherapy and radiation. Serenex licensed the product in 2005.

SNX-5422 is designed to inhibit a molecule known as Hsp90 that “chaperons” proteins found to be necessary in cancer cell survival and growth. It is in Phase 1 clinical trials. Serenex is seeking several patents related to Hsp90 inhibition.

“Inhibition of Hsp90 has demonstrated very promising anti-tumor activity, especially when used in combination with other targeted anti-cancer agents,” Serenex said in a statement.

HSp90 research also has led to what Serenex Chief Executive Officer Richard Kent described as “tremendous opportunities” in areas other than oncology.

Serenex closed on a $30 million “C” round in 2005 and a $29 million B round that closed in 2004. The company was launched in 2000 and received an initial $1.5 million in financing from Mediphase Venture Partners.