CeNeRx BioPharma closes on $9M in new financing

Updated June 16, 2009

CeNeRx BioPharma closes on $9M in new financing

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Research Triangle Park, N.C. —

Venture-backed drug startup CeNeRx BioPharma has closed on $9 million in additional financing and has added to its drug candidate portfolio by acquiring rights to an “agent” that could lead to drugs for combating neuropthy as well as neurodegenerative disorders.

CeNeRx, which focuses on the central nervous system, raised $4 million in additional equity capital from venture backers Pappas Ventures, which is based in the Triangle, Aisling Capital and L Capital partners.

The company also has secured a $5 million credit facility from MidCap Financial.

The funds will be used to clinical trials of TriRima, a drug candidate for treatment of major depressive disorder, and development of CXB909, the agent for neurodegenerative disorder treatment.

"We are pleased at the confidence from our current investors and new partners at MidCap Financial in our promising and growing pipeline of innovative [central nervous system] compounds,” said CeNeRx Chief Executive Officer Barry Brand.

CeNeRx describes CXB909 as an “orally active agent that enhances the effects of nerve growth factor.” CeNeRx licensed it from Krenitsky Pharmaceuticals. Financial terms were not disclosed.

"Nerve growth factor (NGF) has long been of interest as a potential therapy for neuropathies and neurodegenerative diseases, but recombinant NGF lacks key qualities needed for successful CNS drugs," said Daniel Burch, executive vice president of research and development as well as chief medical officer at CeNeRx.

"In preclinical studies, our small molecule agent CXB909 has been shown to increase the action of native NGF, but without the pharmacokinetic and administration challenges of recombinant NGF,” he explained in a statement. “Most notably, CXB909 crosses the blood brain barrier, has a long half-life and is orally available. The preclinical data for this agent is very promising, and we look forward to assessing it in the clinic for neuropathic and neurodegenerative conditions that currently have no treatment options."

Last October, CeNeRx raised a $15 million B round of financing. It has now raised $37.5 million in venture backing since 2005.

Formerlly called Tyrima, TriRima is a drug intended to treat major depressive disorder, or MDD. CeNeRx is researching potential treatments for a variety of central nervous system disorders.

It is based on reversible inhibitors of monoamine oxidase A, or RIMA. RIMA-based antidepressants are already sold in Europe. The drugs elevate levels of three neurotransmitters that affect mood and anxiety, unlike other antidepressants that focus on one neurotransmitter.

If the drug is approved, it would be the first RIMA antidepressant available in the U.S. CeNeRx owns worldwide rights to TriRima.

In the U.S. alone, nearly 15 million adults deal with what the National Institute of Mental Health calls “major depressive disorders.”