Vanderbilt spinout Appello has been backed by Deerfield Management, which recently launched a $65m commercialisation partnership with the university.
Appello Pharmaceuticals, a US-based neurodegenerative disease therapy spinout from Vanderbilt University, closed a $10.5m series A round yesterday co-led by healthcare-focused investment firm Deerfield Management and Mountain Group Partners.
Deerfield and Vanderbilt have launched a $65m commercialisation fund focused on pharmaceutical spinouts, though Appello did not explicitly state this was the source of Deerfield’s commitment.
Appello is developing a treatment for Parkinson’s disease, a progressive brain disorder caused by the death of dopamine-producing nerve cells in the brain’s substantia nigra. Patients experience chronic symptoms including resting tremors, stunted movement and impaired posture.
The treatment would improve upon dopamine replacement-based therapies used today by averting debilitating side effects and providing better effectiveness with long-term usage.
The therapy relies on a modulator targeting the mGlu4 receptor, which could combat the disease by producing a protein called glutamate rather than focusing on dopamine.
The capital will be used to sustain Appello as it continues early-stage R&D on the therapy, licensed from the Vanderbilt Center for Neuroscience Drug Discovery (VCNDD).
Jeffrey Conn, director of VCNDD and Lee Limbird professor of pharmacology, will join Appello’s board of directors.
Alan Bentley, assistant vice-chancellor for tech transfer at Vanderbilt, said: “Vanderbilt is unique among US universities in its ability to discover and develop new therapeutics pre-clinically, and strong partners like Appello make it possible for these discoveries to advance clinically and impact patients’ lives.”
