Chondrial Therapeutics, a US-based mitochondrial disease therapy developer advancing research from Indiana University (IU) and Wake Forest University’s Baptist Medical Center, today obtained up to $22.6m in a series A round featuring Wake Forest’s Catalyst Fund.
The round was led by healthcare-focused investment firm Deerfield Management. Catalyst Fund is a $15m tech development vehicle launched by Wake Forest Innovations, the university’s tech transfer arm, and managed by Pappas Capital.
Founded in 2013, Chondrial Therapeutics has licensed a therapeutic candidate called CTI-1601 that is expected to help combat Friedreich’s Ataxia, a degenerative neuromuscular disease that can lead to gait dysfunction, scoliosis, heart disease and diabetes.
The compound would be used as a means to supply frataxin to the mitochondrial metabolism, rectifying a deficiency in frataxin linked to the onset of Friedrecih’s Ataxia.
Chondrial plans to commence phase 1 clinical trials on CTI-1601 once it has secured investigational new drug status for the compound from US regulator Food and Drug Administration. It is also conducting R&D into other rare mitochondrial diseases.
CTI-1601 was discovered by Mark Payne, a professor of paediatric cardiology at IU’s School of Medicine and director of the Translational Sciences Institute. Payne first hit upon the compound while directing Wake Forest’s paediatric cardiac catheterisation laboratory.
The cash will drive recruitment at Chondrial, which has already promoted its managing director, Carole Ben-Maimon, to chief executive.
Chondrial Therapeutics previously received $500,000 in equity funding from undisclosed investors in August 2014, after securing $100,000 in debt financing two months previously, according to securities filings.
